Assume perfect capital mobility and a fixed exchange rate system. Then, an increase in government spending would shift the a. LM schedule to the left. b. BP schedule to the right. c. BP schedule to the left. d. IS schedule to the right. ANSWER D
Date: September 10th, 2020
According to the neoclassical growth model, if a country makes a policy change to increase its savings rate, in the new steady state: a. output per worker will grow faster than before. b. output per worker will grow at the rate of technology growth. c. capital per worker will be permanently higher. d. all of […]
Date: September 10th, 2020
In the period 1960–95, the cycles of upturns and downturns in the economy (booms and recessions) (a) were eliminated as knowledge of how the economy operated grew. (b) continued to occur, although not nearly as severely as prior to World War II. (c) grew even worse than prior to World War II. (d) were equally […]
Date: September 10th, 2020
Field (2003) claims that the period from 1929 to 1941 was the strongest period of what in U.S. history? (a) Technological advancements (b) Monetary policy (c) Government action (d) Internationalization ANSWER (a)
Date: September 10th, 2020
Rural families were larger in size, on average, than urban families during the antebellum period. Some argue that the relatively high rate of return on a child born on a farm partly explains why. Children born on farms could be considered investments goods—”goods” used to produce something else. Indicate whether the statement is true or […]
Date: September 10th, 2020
In the Mundell-Fleming model with perfect capital mobility, the domestic interest rates are determined by a. monetary policy. b. the IS and LM curves. c. domestic savings and investment. d. budget deficits. e. none of the above. ANSWER E
Date: September 10th, 2020
Endogenous growth models a. predict absolute convergence. b. predict conditional convergence. c. do not predict convergence. d. predict convergence among rich countries but not poor countries. ANSWER C
Date: September 10th, 2020
In the monetarist view, a bond-financed increase in government spending would have a strong effect on real output in a. both the short run and the long run. b. the short run but not the long run. c. the long run but not the short run. d. neither the short run nor the long run. […]
Date: September 10th, 2020
According to the neoclassical growth model, in a steady state with no technology growth: a. the amount of capital per worker is constant over time. b. investment equals total depreciation. c. savings equals total depreciation. d. all of the above. e. none of the above. ANSWER D
Date: September 10th, 2020
Which of the following did not occur during the period 1960–95? (a) The problem of inflation (b) The growth of federal budget and trade deficits (c) Rising unemployment rates (d) All of the above occurred during this period. ANSWER (d)
Date: September 10th, 2020
