With respect to Figure 7-3, the horizontal distance by which the IS curve will shift with a change in taxes is equal to a. ΔT (− b/1 – b). b. ΔT(1/1 – b). c. ΔT(1 – b/1 – b). d. ΔT(1 + b/1 + b). ANSWER A
Date: September 10th, 2020
Inflation targeting is one policy that attempts to deal with the problem of: a. dollarization. b. time inconsistency. c. the tradeoff between inflation and unemployment. d. the liquidity trap. e. none of the above. ANSWER B
Date: September 10th, 2020
The Taylor rule specifies a. a constant relationship between interest rates and output. b. a constant relationship between interest rates, output, and inflation. c. a flexible relationship between interest rates, output, and inflation. d. a fixed relationship between inflation and output. e. none of the above. ANSWER B
Date: September 10th, 2020
According to supply-side theory, a cut in taxes will tend to cause ________. A) a decline in the amount of total tax revenue collected B) no change in the amount of total tax revenue collected C) an increase in the amount of total tax revenue collected D) individual workers to devote more time to leisure […]
Date: September 10th, 2020
Land owners with secure and protected property rights are motivated to (a) use their land productively. (b) maintain their land and its value as long as the land is owned privately and profits are realized by the land owners. (c) not hold their land idle if they face property taxes due to costs imposed by […]
Date: September 10th, 2020
Incentives matter and different groups of producers, consumers and politicians will support those policies that promise to advance those projects most advantageous to them. Which statement about opposition to or support for U.S. tariff policy during the antebellum period is correct? (a) “Producers in the South objected to tariffs placed on imported goods. They needed […]
Date: September 10th, 2020
According to supply-side economics, a cut in taxes will affect total tax revenue, because ________. A) the level of productivity should fall precipitously with a tax cut B) a tax cut will be followed by an even larger decrease in government spending C) of the resulting increase in saving D) of the positive impact on […]
Date: September 10th, 2020
In real business cycle models, business cycles are caused by ______, while in new Keynesian model, business cycles are caused by ________. a. aggregate demand; aggregate demand b. aggregate demand; aggregate supply. c. aggregate supply; aggregate demand. d. fiscal policy; monetary policy ANSWER C
Date: September 10th, 2020
Unlike World War I (1914–18), the war debt of World War II (1941–45) was manageable and did not contribute to inflation. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The middle Atlantic colonies were more popular than New England as destinations for immigrants before 1770 because of their more liberal religious attitudes and the availability of land. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
