A cut in the payroll tax will tend to cause, other things the same, ________. A) a change in aggregate demand, with no effect on supply B) a change in both aggregate demand and supply C) a change in aggregate supply, with no effect on demand D) no change in either aggregate demand or supply […]
Date: September 10th, 2020
The quantity theory of money implies that if the money stock were to double, the price level would a. fall by one half. b. rise, but only slightly. c. also double. d. be unchanged. e. all of the above. ANSWER C
Date: September 10th, 2020
Hughes and Cain (2011) ask: Who suffered from the tariff in the 19th century? What was their answer? (a) the government (b) producers of import-competing goods (c) consumers (d) workers in import-competing industries ANSWER (c)
Date: September 10th, 2020
In any efficiency wage model, it must be true that a. the marginal benefit of increased efficiency is equal to the marginal cost of higher wages. b. nominal wages are inflexible. c. disequilibrium in the labor market exists. d. all of the above. e. none of the above. ANSWER D
Date: September 10th, 2020
If the Fed has the discretion to choose its policy and announces a low inflation policy, then a. the public is likely to discount this claim because the Fed has an incentive to change their policy in the future. b. the public is likely to believe this claim because the Fed has no incentive to […]
Date: September 10th, 2020
American economic history actually is a study of (a) stable population growth. (b) how colonial Americans worked side-by-side with the natives to produce stable economic growth and wealth for all individuals. (c) how a small, inconsequential economy grew into a giant economy through a series of successes and failures. (d) how people in other countries […]
Date: September 10th, 2020
The U.S. and other industrializing nations depended heavily on international trade. Indicate whether the statement is true or false ANSWER False (Unlike other nations, the U.S. did not.)
Date: September 10th, 2020
If output per worker in a steady state is $30,000, depreciation is 13%, the population growth rate is two percent, and the saving rate is 20%, what is the steady state capital-labor ratio? A) $10,500 B) $85,714 C) $22,500 D) $40,000 ANSWER D
Date: September 10th, 2020
Changes in all of the following shift the LM curve except a. the price level. b. income. c. the money supply. d. money demand. e. all of the above shift LM curve. ANSWER B
Date: September 10th, 2020
Since the economy was operating at less than full capacity when the U.S. entered World War II (1941–45), price controls did not surface until the end of the war. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
