Within the IS-LM curve model, if the government cut taxes at the same time that there was an autonomous increase in investment demand, then a. income would rise and the interest rate would fall. b. income and the interest rate would rise. c. income would rise but the effect on the interest rate is uncertain. […]
Date: September 10th, 2020
Consumption per worker is 72, depreciation is 12.5%, and capital per worker is 64. Given the production function y = 20 , show that this economy is in a steady state. If the saving rate should double, what is the new steady-state level of consumption per worker? ANSWER The steady-state capital-labor ratio k* = […]
Date: September 10th, 2020
In colonial America, the average wage laborer (a) received health care benefits, over-time pay and injury compensation. They also worked in safe and healthy environments. (b) achieved a standard of living significantly higher than those standards realized throughout the world. (c) possessed few labor rights, privileges and protections, while being denied the right to vote […]
Date: September 10th, 2020
Important steps in the growth of the wage-labor system of the North in the early 19th century include which of the following? (a) The advancement of many of the old skilled crafts and apprenticeship systems by the factory system (b) The fall in the demand for unskilled labor created by transportation improvements (c) The complication […]
Date: September 10th, 2020
A(n) ________ in aggregate demand will result from a decrease in ________. A) decrease; inflation B) increase; taxes C) increase; the budget deficit D) increase; government purchases ANSWER B
Date: September 10th, 2020
Identify which of the following motivated European expansion in America. (a) International trade and finance opportunities (b) Precious metals such as gold and silver (c) The hope of finding a northwest passage to the Orient (d) All of the above ANSWER (e)
Date: September 10th, 2020
The aggregate production function for real business cycle models is shown as a. yt = F(Kt, Nt). b. yt = ztF(Kt – Nt). c. yt = ztF(Kt, Nt). d. yt = zt/(Kt, Nt). ANSWER C
Date: September 10th, 2020
If a US citizen is employed by a US company in Russia, the income she earns is: a. part of US GNP and Russian GDP. b. part of US GNP and Russian GNP. c. part of US GDP and Russi GNP d. part of US GDP and Russia GDP. ANSWER A
Date: September 10th, 2020
In a steady-state economy with no population growth, consumption per worker is 45, the saving rate is 25 percent, and the depreciation rate is 15 percent. The level of capital per worker is ________. A) 75 B) 36 C) 100 D) 27 ANSWER C
Date: September 10th, 2020
For the period we are studying (1789–1860), the United States (a) was a high tariff, protectionist nation. (b) derived the vast majority of federal revenues from the tariff. (c) was divided on the question of the tariff, with the South generally in opposition to it. (d) was characterized by all of the above. ANSWER […]
Date: September 10th, 2020
