What does Simon Kuznet’s (1958) study on the U.S. economy show? (a) Short swings in the U.S. business cycles but steady, stable growth in Real Gross Domestic Product (b) Immigrants to the U.S. were attracted by the secular increases in U.S. real wages and incomes (c) A decrease, not increase, in net U.S. migration from […]
The idea that hysteresis plays a role in macroeconomics implies that a. monetary policy can have an effect on the natural rate of unemployment. b. workers can overreact to changes in monetary policy. c. stabilization policy is ineffective and counterproductive. d. fiscal policy is ineffective and counterproductive. ANSWER A
Which of the following best describes white servitude? (a) It applied to hired labor. (b) It was more costly than slavery. (c) It bound vagrants and orphans into productive employment. (d) It was pervasive on tobacco, indigo and cotton plantations. ANSWER (d)
Franklin D. Roosevelt’s nationwide “Bank Holiday” in March 1933 merely finished the job started by the governors of the states, who were already closing down the banking systems. Indicate whether the statement is true or false ANSWER TRUE
Inflation leads to bracket creep, which forces taxpayers to pay a larger percentage of their income in taxes, when (a) Changes in the real purchasing power of their income do not keep pace with inflation. (b) Changes in the real purchasing power of their income keep pace with inflation. (c) Income tax codes change quickly […]
On the farm, which of the following people had the highest labor value? (a) A woman (b) A man (c) A child (d) A grandparent ANSWER (b)
Which of the following is correct? The natural rate of unemployment a. is a zero unemployment rate. b. has been steady at 3 percent over the past decade. c. is defined by Friedman as that rate of unemployment “in which everyone who wants a job can have a job.” d. is the unemployment rate that […]
The net capital inflow is a. positively related to the domestic interest rate minus the foreign interest rate. b. negatively related to the domestic interest rate minus the foreign interest rate. c. positively related to the exchange rate. d. negatively related to the exchange rate. e. both a and c. ANSWER A
The downturn in the immigration cycle beginning in the 1850s is attributable to which group? (a) Children (b) Grandparents (c) Women (d) Men ANSWER (d)
One would expect a shift down in the Phillips curve if there was a(n) a. a decrease in aggregate demand. b. decrease in government spending. c. decrease in the money supply. d. a shift in aggregate supply to the left. e. Any of the above ANSWER D
