Unlike colonial America, there are no government restrictions on business activities and practices today. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
If velocity is more stable than the IS curve, then targeting the money supply a. will be effective in stabilizing the LM curve and interest rates. b. has the same effects as targeting interest rates. c. will be less effective in stabilizing aggregate demand than targeting interest rates. d. is not possible. ANSWER B
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
Residential construction did not return to its 1926 high levels until 1949. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
On the graph above, suppose the economy is at point 1. Which sequence of points best illustrates the short-run and then long-run impacts if taxes are reduced for one year, then returned to the original level? [Assume that potential output remains constant at .] A) 7, 2, 5 B) 2, 4, 1 C) 2, 7, […]
Date: September 10th, 2020
