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 […]
Date: September 10th, 2020
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
Date: September 10th, 2020
Under perfect capital mobility and flexible exchange rates, monetary policy works through the a. interest rate. b. exchange rate. c. exports. d. Both b and c e. None of the above ANSWER B
Date: September 10th, 2020
In the Mundell-Fleming model, regardless of whether the economy has perfect capital mobility or not, an increase in the money supply a. reduces interest rates . b. increases income. c. decreases the trade balance. d. increases capital inflows. ANSWER B
Date: September 10th, 2020
Between Independence and the Civil War, American population growth was (a) steady and constant. (b) rapid but wildly unstable. (c) positive and rapid. (d) heavily concentrated in the settlement in Western lands. ANSWER (c)
Date: September 10th, 2020
Which of the following is true for the period between 1860 and 1910? (a) The number of people in the labor force increased at a faster pace than the total population. (b) The workday lengthened. (c) Real national income decreased. (d) All of the above. ANSWER (a)
Date: September 10th, 2020
In Brinley Thomas’ (1954) theory of the Atlantic Economy, (a) cotton exports to Europe drove the growth of the U.S. economy. (b) people and capital moved to the U.S. when U.S. economic growth was strong. (c) the peaks of the U.S. business cycle were closely aligned with that of European peaks. (d) all of the […]
Date: September 10th, 2020
In response to an increase in technology, we would expect a. both the short run and long run Phillips curve to shift to the right. b. both the short run and long run Phillips curve to shift to the left. c. the long run Phillips curve remains unchanged while the short run Phillips curve shifts […]
Date: September 10th, 2020
An exogenous increase in domestic investment will a. increase foreign capital flows into the country. b. increase domestic capital flows to foreign countries. c. reduce domestic interest rates. d. both a and b. e. none of the above. ANSWER A
Date: September 10th, 2020
The Kennedy Tax Cut, enacted in 1964 after his death, was the first supply-side tax cut used in U.S. history. Its intent was to stimulate the economy by reducing tax rates in order to do what? (a) Reduce supply (b) Increase production, employment and disposable income (c) Increase government spending (d) Increase the money supply […]
Date: September 10th, 2020
