A scatterplot is A) a graph highlighting leads and lags. B) a graph with one series on each axis. C) a graph of one series against time. D) a graph of two series against time. ANSWER B
Date: September 10th, 2020
In macroeconomic modelling, as price flexibility increases ________. A) the short-run aggregate supply schedule will get flatter B) the short-run aggregate supply schedule will get steeper C) the short-run aggregate supply schedule will shift to the right D) the short-run aggregate supply schedule will shift to the left ANSWER B
Date: September 10th, 2020
In the European Monetary Union, the supply of euros A) is managed by the individual central banks of the member countries. B) is managed by the European Central Bank. C) is determined by market forces. D) automatically varied in response to short-run fluctuations in the exchange rates of the member nations. ANSWER B
Date: September 10th, 2020
In the basic two-period model, A) credit markets have frictions. B) the government borrows at a lower interest rate than do consumers. C) some consumers will always default on their debts. D) consumers do not default on their debts. ANSWER B
Date: September 10th, 2020
The desire to smooth consumption is reflected in A) the consumer’s budget constraint. B) the curvature in a consumer’s indifference curves. C) choice between present and future. D) the production possibilities frontier. ANSWER B
Date: September 10th, 2020
How might government-directed credit help poor entrepreneurs to escape the “tyranny of collateral”? What side-effects might undermine the effectiveness of such a program? What will be an ideal response? ANSWER A government run or influenced bank can ignore profit motivation and risk aversion to target underserved businesses on favorable terms involving little or no […]
Date: September 10th, 2020
A lagging variable can be recognized by the fact that A) its persistence is smaller than that of GDP. B) its turning points happen before the turning points of GDP. C) the turning points of GDP happen before its turning points. D) its persistence is larger than that of GDP. ANSWER C
Date: September 10th, 2020
Fluctuations in Tobin’s q are ________, because ________. A) frequent and substantial; asset prices are volatile B) frequent and substantial; replacement costs are volatile C) infrequent and mild; replacement costs are relatively stable D) infrequent and mild; the marginal product of capital does not change quickly ANSWER A
Date: September 10th, 2020
If the correlation between GDP and y is 0, we say y is A) procyclical. B) acyclical. C) countercyclical. D) tricyclical. ANSWER B
Date: September 10th, 2020
The level of income is unchanged in response to unanticipated anti-inflation policy in ________. A) real business cycle theory B) traditional Keynesian theory C) new Keynesian theory D) post classical theory ANSWER A
Date: September 10th, 2020
