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
The difference between the simple Keynesian model and the IS-LM curve model is that the latter a. excludes a money market and interest rates. b. includes a commodity market and flexible income. c. excludes a commodity market and interest rates. d. includes a money market and flexible interest rates.Figure 7-3 ANSWER D
Date: September 10th, 2020
New Keynesian economists a. believe that the deviations of output below potential output during recessions are socially costly. b. presume that much unemployment is involuntary. c. attempt to improve the microeconomic foundations of the traditional Keynesian models, not challenge their major premises. d. Both a and c e. All of the above ANSWER E
Date: September 10th, 2020
Who does not want a tariff? (a) Consumers of imported goods (b) Domestic businesses producing goods that compete with the imported goods (c) Politicians trying to garner domestic support from the import-competing domestic industries (d) The federal government ANSWER (a)
Date: September 10th, 2020
Accommodating fiscal policy refers to a. using monetary policy to prevent recessions. b. using fiscal policy to prevent recessions. c. using monetary policy to offset the negative effects of fiscal policy. d. using fiscal policy to help politicians in office. ANSWER C
Date: September 10th, 2020
The rise in European protectionism helped the U.S. economy by increasing foreign demand for agricultural goods. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Squatters were considered pioneers or land entrepreneurs by many of the people in (a) England and the New England colonies. (b) the New England colonies and Middle Colonies. (c) the Middle Colonies and Southern Colonies. (d) all of the above. ANSWER (c)
Date: September 10th, 2020
A One-Child Policy was instituted in 1979 in ________. A) Brazil B) South Africa C) India D) China ANSWER D
Date: September 10th, 2020
