According to the Keynesian model, a decline in the expected price level a. will increase the inflation rate a central bank must generate to achieve a target level of unemployment. b. will decrease the inflation rate a central bank must generate to achieve a target level of unemployment. c. will not affect the inflation rate […]
Hughes and Cain (2011) give some credit to which of the following factors for the 1860–1910 increase in the number of people employed, shorter work days and higher real incomes? (a) A decrease in the number of immigrants (b) A closed economy with no imports coming into or exports going out of the U.S. (c) […]
The natural rate of employment a. will change with changes in the long run aggregate supply curve. b. will be a level such that the expected real wage equals the actual real wage. c. will be at a level where the actual and expected price levels are equal. d. both a and c. e. all […]
By 1860, the U.S. (a) had achieved an equal distribution of income and wealth. (b) had experienced growth in both agriculture and manufacturing, but growth in manufacturing had begun to outpace agriculture. (c) land had become the primary income-earning asset. (d) experienced a slowdown in urbanization and rapid expansion in agriculture at the expense of […]
The trade deficit and federal budget deficit plagued which U.S. presidential administration with high inflation and low levels of production and employment? (a) Franklin D. Roosevelt (1933–45) (b) Dwight D. Eisenhower (1953–61) (c) John F. Kennedy (1961–63) (d) Ronald W. Reagan (1981–89) ANSWER (d)
Social Security taxes were and are progressive, meaning that the highest proportion is taxed from the highest incomes. Indicate whether the statement is true or false ANSWER FALSE
What does a study of immigration figures before 1921 indicate? (a) An overwhelming majority of immigrants came from the British Isles. (b) Voluntary immigrations slowed as 1921 approached. (c) The diversification of immigrants increased since the colonial period of U.S. history. (d) It is not possible to link immigration patterns and growth in the U.S. […]
According to Simon Kuznet’s (1958) research, the pattern of immigration in 1865–1914 (a) showed long swings but not the short-term business cycle fluctuations. (b) showed no long swings in the 1820–1860 period, but did show the business cycle. (c) showed both business cycle patterns and long swing patterns. (d) unlike 1820–1860, showed neither short cycles […]
The U.S. economy remains subject to frequent boom and bust cycles. Throughout U.S. history, policymakers after the Great Depression often (a) raise or lower taxes and spending to adjust aggregate demand and thereby smooth the business cycle. (b) take a hands-off approach to the business cycle. (c) consult with world organizations on how to address […]
The U.S. Supreme Court ruled that the tax on food processors in the 1933 Agricultural Adjustment Act (AAA) was unconstitutional. Indicate whether the statement is true or false ANSWER TRUE
