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
The Social Security System of 1935 was flawed from the beginning. It left old-age pensions in the control of the states. Two examples include workers’ and unemployment compensation. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Which of the following is true for the period from Independence to 1860? (a) The system of indentured servitude died out because it was seen to be immoral and inconsistent with the Constitution. (b) The system of slavery flourished because the relative price of slaves fell consistently. (c) The system of wage labor flourished as […]
Date: September 10th, 2020
In the Thomas (1954) model, (a) all nations near the Atlantic Ocean were considered one economic unit. (b) laborers, capital and other resources freely move to those users with the highest net returns. (c) the European economy moved inversely in relation to the U.S. economy and vice versa. (d) all of the above are true. […]
Date: September 10th, 2020
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 […]
Date: September 10th, 2020
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 […]
Date: September 10th, 2020
