The higher the marginal income tax rate, the a. higher the MPC out of disposable income. b. lower the MPC out of disposable income. c. higher the autonomous expenditure multiplier. d. lower the autonomous expenditure multiplier. e. None of the above ANSWER D
Date: September 10th, 2020
Comparing steady states, which of the following is a result of a permanent increase in the saving rate, but is not a consequence of a one-time increase in productivity? A) an increase in consumption per worker B) a decrease in the marginal product of capital C) an increase in output per worker D) an increase […]
Date: September 10th, 2020
In the real business cycle theory, during a period when output is falling, a. workers are voluntarily giving up their jobs. b. the quantity supplied of labor is falling. c. aggregate productivity must be falling. d. all of the above. e. none of the above. ANSWER D
Date: September 10th, 2020
The 1819 panic was caused by the Second Bank of the United States, which called on the state banks to redeem their notes in order to acquire $4 million in specie to pay the borrowing that had been undertaken in Europe in 1803 to finance the Louisiana Purchase. Indicate whether the statement is true or […]
Date: September 10th, 2020
Suppose that the MPC out of disposable income was 0.8 and the marginal tax rate was 0.25 for a given economy. In this case, the value of the tax multiplier in the simple Keynesian model would be a. 1. b. -2. c. 2.5. d. 2. e. none of the above. ANSWER B
Date: September 10th, 2020
According to real business cycle theory, business cycles a. can be eliminated with appropriate monetary and fiscal policy. b. are natural and efficient reactions to changes in productivity. c. do not occur. d. occur infrequently. e. none of the above. ANSWER B
Date: September 10th, 2020
The Field Hypothesis (2003) suggests that production possibilities expanded during the depression years. Much of the resulting increase in potential went unrealized, though. This explains why potential output in 1942 was greater than expected. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Economic historians have located evidence to suggest that colonists barely lived at subsistence levels. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
At one time, people living in the U.S. were imprisoned or fined for not having legitimate work. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
During the entire period of 1820–1920, there were persistent trends in the structure of American foreign trade. They exhibited (a) a decrease in imported finished manufactures and an increase in exported finished manufactures. (b) an increase in the exports of crude materials and foodstuffs and a decline in their importation. (c) increases in both imports […]
Date: September 10th, 2020
