All economists agree that World War II (1941–45) was responsible for ending the Great Depression. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The majority of people living in colonial America in 1790 were of African origins. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
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
As shown in Figure 7-4, an autonomous decline in expectations of future profitability causes the a. IS schedule to shift to the left. b. IS schedule to shift to the right. c. LM schedule to shift to the right. d. LM schedule to shift to the left. ANSWER A
Date: September 10th, 2020
Advocates of real business cycle theories argue that all of the following could cause a recession except a. a fall in consumer expectations. b. natural disasters. c. higher taxation. d. increases in the price of oil. ANSWER A
Date: September 10th, 2020
On the graph above, a permanent tax reduction, assuming that there is a permanent effect on aggregate supply, is likely to move the economy from point 1 to point ________. A) 2 B) 8 C) 6 D) 3 ANSWER A
Date: September 10th, 2020
Tariff rates remained high after the Civil War because government revenue needs were pressing and there were protectionist sentiments. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The future of any region dependent on export industrial growth is influenced by: (a) the region’s natural endowment at given technology levels. (b) the character of the export industry. (c) subsequent changes in technology and transport costs. (d) all of the above. ANSWER (d)
Date: September 10th, 2020
The classical model predicts that, in the short-run, a tax cut financed by an increase in the money supply would a. leave output and the price level unchanged. b. increase the price level but leave output unchanged. c. increase output but and reduce the price level. d. increase output and the price level by increasing […]
Date: September 10th, 2020
