In the model for desired saving, autonomous is roughly synonymous with ________. A) policy-determined B) endogenous C) intended D) inflation-adjusted E) exogenous ANSWER E
Date: September 10th, 2020
Gross investment is equal to ________. A) net investment plus depreciation B) net investment divided by depreciation C) net investment minus depreciation D) net investment times depreciation ANSWER A
Date: September 10th, 2020
According to real business cycle theory, a likely cause of an increase in employment is ________. A) an increase in the real wage B) an increase in aggregate demand C) a decrease in the real wage D) a decrease in the real interest rate ANSWER A
Date: September 10th, 2020
Consumption expenditures are a function of ________. A) the real interest rate B) disposable income C) autonomous consumption D) all of the above E) none of the above ANSWER D
Date: September 10th, 2020
The user cost of capital is negatively related to ________. A) the real rate of interest B) the depreciation rate C) the expected rate of change of the real price of capital D) the tertiary log of the nominal price of capital ANSWER C
Date: September 10th, 2020
All of the following present significant problems with measuring real GDP and the price level except A) changes in absolute price levels. B) changes in relative price levels. C) changes in the quality of goods over time. D) the introduction of new goods. ANSWER A
Date: September 10th, 2020
In the New Keynesian model, if there is a decrease in anticipated future total factor productivity, then A) there should be no change in monetary or fiscal policy. B) the central bank’s interest rate target should be increased. C) government spending should fall, and the central bank’s interest rate target should rise. D) government spending […]
Date: September 10th, 2020
Providers of health care insurance require applicants to provide information on their medical history. The purpose may be to minimize which of the following problems? A) moral hazard B) adverse selection C) government taxes D) opportunity cost ANSWER B
Date: September 10th, 2020
If a particular measure of real GDP consistently underestimates growth in real GDP, then the rate of inflation as measured by the GDP deflator A) will be biased upward. B) will be biased downward. C) will be unbiased. D) cannot be calculated. ANSWER A
Date: September 10th, 2020
The U.S. Federal Reserve A) has complete independence from the U.S. government. B) acts within the boundaries established by Congress and the president, but has flexibility in meeting the goals of monetary policy. C) is a government agency run by the Treasury Department and under the strict control of Congress. D) is run by elected […]
Date: September 10th, 2020
