In the real intertemporal model, if future total factor productivity increases, this captures the effects of A) intemporal substitution. B) Ricardian equivalence. C) the government expenditure multiplier. D) news shocks. ANSWER D
Date: September 10th, 2020
Which of the following had the highest rate of growth during the period 1948-72? A) West Germany B) Vietnam C) Japan D) The United States of America ANSWER C
Date: September 10th, 2020
Where the IS and LM curves intersect: a. actual expenditure is equal to planned expenditure. b. output equals aggregate demand. c. savings plus taxes equals investment plus government spending. d. all of the above. ANSWER A
Date: September 10th, 2020
According to the classical model, in the labor market a. perfect information about the market price by market participants is required. b. the labor market is always in equilibrium. c. prices and wages are perfectly flexible. d. both suppliers and purchasers of labor must know the relevant trading prices. e. All of the above. […]
Date: September 10th, 2020
The Solow model suggests that economies with the same aggregate production function, ratio of workers to the total population and saving rates will ________. A) trade with one another B) start with different initial levels of per capita income C) possess the same rate of depreciation D) experience convergence ANSWER D
Date: September 10th, 2020
The American colonies have a rich and deep history in international trade and immigration. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
In the classical model, the supply-determined nature of output is illustrated by a(n) a. horizontal aggregate supply curve. b. vertical aggregate supply curve. c. upward sloping aggregate supply curve. d. downward sloping aggregate supply curve. ANSWER B
Date: September 10th, 2020
Which of the following statements is correct? a. In the new classical view, the money wage is assumed to adjust quickly to clear the labor market whereas in the Keynesian view, the money wage is sticky in a downward direction. b. In the new classical view, the money wage is sticky in a downward direction […]
Date: September 10th, 2020
American manufacturers rapidly dropped waterwheels when the steam engine was introduced. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
If future total factor productivity increases A) labor demand increases. B) government expenses increase. C) consumption demand decreases. D) investment demand increases. ANSWER D
Date: September 10th, 2020
