The economic growth of the United States over the last half-century ________. A) is best understood as the result of high levels of saving and investment B) is quite similar to the experience of most other economies C) was driven by rising import purchases D) has been slower than growth in several other economies […]
Date: September 10th, 2020
Based on the graph above, a cause of movement from point 1 to point 2 might be ________. A) a positive price shock B) government policy that lowers unemployment C) an increase in potential output D) an increase in expected inflation E) none of the above ANSWER B
Date: September 10th, 2020
Which of the following governmental expenditures are not included in gross domestic product? a. The construction of federal buildings b. Social Security payments c. Salaries for senators d. Purchases of new defense weapons ANSWER B
Date: September 10th, 2020
One similarity between the policy recommendations of the new classical and monetarist models is that a. both believe that monetary policy has much stronger employment effects than does fiscal policy. b. are policy activists. c. both believe in the natural rate of output. d. both believe that discretion is preferable to rules. e. none of […]
Date: September 10th, 2020
Among 33 major economies, government spending (relative to GDP) in the United States is ________. A) relatively low B) remarkably high C) about average D) lowest of all ANSWER A
Date: September 10th, 2020
An increase in total factor productivity shifts the production function A) upward and increases the marginal product of labor. B) upward and decreases the marginal product of labor. C) downward and increases the marginal product of labor. D) downward and decreases the marginal product of labor. ANSWER A
Date: September 10th, 2020
Of the following, which is the least likely example of an increase in total factor productivity? A) the introduction of the assembly line B) an increase in immigration C) good weather D) a reduction in the relative price of energy ANSWER B
Date: September 10th, 2020
In the IS-LM model, the two variables that are affected by the interest rate are a. money supply and money demand. b. money supply and investment spending. c. money demand and consumption. d. money demand and investment spending. e. none of the above. ANSWER D
Date: September 10th, 2020
Countries with different initial levels of per capita income may gravitate to a similar level of per capita income. Economists call this phenomenon ________. A) convergence B) simulation C) gravitation D) depreciation ANSWER A
Date: September 10th, 2020
The smallest component of federal outlays is ________. A) government purchases B) transfer payments C) interest on government debt D) grants to states ANSWER C
Date: September 10th, 2020
