On the Solow Diagram, an increase in the saving rate is shown by ________. A) an upward shift of the depreciation line B) an upward shift of the investment function C) an upward shift of the per-worker production function D) a downward shift of the investment function ANSWER B
Date: September 10th, 2020
Important sources of conflict in colonial America include conflicts between all of the following except (a) Slaves and masters (b) Native Americans and colonists (c) Puritans, Roman Catholics, and Protestants (d) Indentured servants and masters ANSWER (d)
Date: September 10th, 2020
With regard to indentured servitude, (a) indentured servants were typically slaves. (b) this institutional arrangement benefited all parties entering the contract. (c) this institutional arrangement restricted the supply of labor for the colonies. (d) all of the above answers are correct. ANSWER (b)
Date: September 10th, 2020
In the Solow model, the faster growth of output that results from an increase in the saving rate is temporary, because ________. A) of diminishing marginal product of capital B) with a larger stock of capital, consumption is encouraged more than investment C) the rising capital stock depreciates at a faster rate D) the economy […]
Date: September 10th, 2020
Possible sources of an upward bias in the CPI include the a. quantity adjustment bias. b. substitution bias. c. new products bias. d. Both b and c e. All of the above ANSWER D
Date: September 10th, 2020
The real business cycle theory is most closely related to a. Keynesian theory. b. monetarist theory. c. the classical model. d. the new Keynesian model. ANSWER C
Date: September 10th, 2020
Inflation targeting alleviates the problem of a. money multiplier instability that makes money targeting difficult. b. time inconsistency. c. a lack of credibility in monetary policy. d. both b and c. e. all of the above. ANSWER E
Date: September 10th, 2020
Which of the following is not considered an ultimate target that the monetary authority attempts to control? a. Growth in real GDP b. The rate of unemployment c. The rate of inflation d. The money supply ANSWER D
Date: September 10th, 2020
According to Lucas’ misperception theory, countries with higher rates of inflation should have a _____new classical AS curve. a. flatter. b. steeper. c. downward sloping d. vertical. e. none of the above. ANSWER A
Date: September 10th, 2020
A government debt larger than the economy’s GDP ________. A) is an example of debt repudiation B) is a predictor of future large budget deficits C) is a consequence of debt intolerance D) is a possible consequence of tax smoothing ANSWER D
Date: September 10th, 2020
