In the case where the LM schedule is relatively steep and the IS schedule is relatively flat, the most effective policy would be a change in a. money supply. b. government expenditures. c. government spending financed by a change in taxes. d. taxes. ANSWER A
Date: September 10th, 2020
The U.S. claimed a disproportionate share of world trade given its share of the world’s population. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The definition of the velocity of money is a. the money supply multiplied by prices divided by transactions. b. the number of times a unit of currency changes hands over a perid. c. money supply times prices divided by transactions. d. the fraction of total income held as money. ANSWER B
Date: September 10th, 2020
According to the Solow model, a benefit of policies to limit population growth might be ________. A) that smaller families are more likely to contribute to technological advances B) that smaller families have better access to birth control methods and devices C) that smaller families might provide each person a larger share of national income […]
Date: September 10th, 2020
The U.S. economy experiences a public debt when the value of its annual deficits exceeds the value of its annual surpluses over an extended period of time. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
According to supply-side theory, if one starts from a balanced budget, a cut in taxes will tend to cause ________. A) a budget deficit B) no change in the federal government budget C) a decrease in aggregate supply and an increase in aggregate demand D) a budget surplus ANSWER D
Date: September 10th, 2020
According to the Taylor rule, when inflation and/or output is above its target, then: a. the federal funds rate must be negative. b. the federal funds rate must be above its target. c. the federal funds rate must be above inflation. d. none of the above are correct. ANSWER C
Date: September 10th, 2020
Which of the following models view changes in real supply-side factors as determinants of short-run fluctuations in output and employment? a. New classical models b. Political business cycle models c. Keynesian models d. Real business cycle models e. none of the above ANSWER D
Date: September 10th, 2020
Evidence of a negative correlation between income per capita and population growth rates ________. A) implies that birth control is most effective in low-income countries B) has not been found in the available data C) is consistent with the Solow model D) suggests that population growth stimulates technological progress ANSWER C
Date: September 10th, 2020
The Fisherian version of the quantity theory equation is a. MV = Py. b y = c + i + g. c. M = kPy. d. s = i + (g – t). ANSWER A
Date: September 10th, 2020
