Consider the two graphs above. Suppose there is increased concentration in the retail sector (that is, fewer, larger companies). This would ________ the desired level of inventories, as depicted in graph ________. A) increase; B B) increase; A C) decrease; B D) decrease; A ANSWER D
Date: September 10th, 2020
Factors that shift the AD Curve include ________. A) the inflation rate B) aggregate output C) taxes D) all of the above E) none of the above ANSWER C
Date: September 10th, 2020
Research supporting the new Keynesian model finds that prices are ________. A) slow to adjust to aggregate demand shocks B) changed very frequently C) changed only infrequently D) not as flexible as wages ANSWER A
Date: September 10th, 2020
Predicting business cycles is difficult because A) they are very persistent. B) the weather changes unpredictably. C) statistics lie. D) their frequency is irregular. ANSWER D
Date: September 10th, 2020
Based on the Saving-Investment Diagram, if the world real interest rate is indicated by A, then ________. A) the difference between values G and E measures the trade surplus B) the difference between values G and F measures the trade surplus C) the domestic real interest rate is indicated by B D) desired saving has […]
Date: September 10th, 2020
In the long run, does it matter whether a policy action was anticipated or not? What will be an ideal response? ANSWER In the long run, output is potential output. The response to an anticipated policy action comes sooner, but is ultimately no different than the delayed response to a “recognized” policy. Nonetheless, it […]
Date: September 10th, 2020
Government-backed deposit insurance increases the ________. A) Willamette torsion effect B) adverse selection problem C) moral hazard problem D) the prudential contagion problem ANSWER C
Date: September 10th, 2020
Consider the two graphs above. Suppose that improvements in technology enable farmers to produce two or more harvests of the same crop each year. This would ________ the desired level of inventories, as depicted in graph ________. A) increase; B B) increase; A C) decrease; B D) decrease; A ANSWER D
Date: September 10th, 2020
Consider the two graphs above. Suppose that improvements in storage technology reduce inventory losses. This would ________ the desired level of inventories, as depicted in graph ________. A) increase; B B) increase; A C) decrease; B D) decrease; A ANSWER A
Date: September 10th, 2020
Macroeconomic forecasting is made more difficult due to the fact that A) deviations from trend in real GDP are persistent. B) turning points are hard to predict. C) there is no regularity in comovements. D) consumption is smooth. ANSWER B
Date: September 10th, 2020
