To classical economists, it is always true that a. there is zero unemployment. b. actual output is always equal to potential output. c. excess demand for goods is possible unless prices are forced to fall. d. the marginal product of labor exceeds the real wage. ANSWER B
Date: September 10th, 2020
GDP is an imperfect measure of well-being because a. it does not measure standards of living. b. it does not include household production. c. it ignores many of the costs of production. d. it excludes many goods produced within markets. e. both b and c. ANSWER E
Date: September 10th, 2020
If an economy initially starts away from the steady state ________. A) output will gradually fall over time B) the economy will converge to the steady state in the long-run C) consumption spending must be greater than investment spending D) consumption spending must rise ANSWER B
Date: September 10th, 2020
The negative impact of government debt on the economy is mitigated by ________. A) the impact of the debt on national saving B) government spending on schools and highways C) the interest rate effects of government budget deficits D) the phenomenon of crowding-out ANSWER B
Date: September 10th, 2020
Early industrialization was characterized by labor-saving technology, and this caused U.S. wages to be lower in the manufacturing industry than would otherwise have been the case. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
According to the new classical view, if the money supply and prices fall but output remains the same indicates that a. expectations must be adaptive. b. this change in the money supply was anticipated. c. aggregate supply must have shifted upward. d. none of the above can explain this. ANSWER B
Date: September 10th, 2020
The marginal product of the fourth gizmo worker hired is A) 1. B) 3. C) 5. D) 10. ANSWER C
Date: September 10th, 2020
A variable that the Federal Reserve focuses on because it has a direct link to the variables the Fed is ultimately concerned about is known as a(n) a. median target. b. short-term target. c. immediate target. d. intermediate target. ANSWER D
Date: September 10th, 2020
Which of the following is true about the LM curve? a. Along the LM curve, actual expenditure is equal to planned expenditure. b. The LM curve slopes upward and is consistent with a given level of income. c. The LM cuve slopes upward for a given level of the money supply. d. The LM curve […]
Date: September 10th, 2020
How many of the following business cycle facts can be explained if the primary cause of business cycles is temporary changes in total factor productivity: procyclical consumption, procyclical investment, procyclical employment, and procyclical real wages? A) one B) two C) three D) four ANSWER D
Date: September 10th, 2020
