The “middle-class” ideal that developed in the early 19th century included which of the following elements? (a) Women were socially and legally equal to men and were encouraged to choose between working and staying in the home (avoiding wage-labor in the factories). (b) Men were to be the income earners providing for the family’s material […]
If an economy is growing at 2 percent a year but its rate of technology growth is 1 percent a year, then this country must be: a. below its steady state level of capital per worker. b. expected to grow slower in the future. c. has a savings rate that is too low. d. none […]
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
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)
In an economy with perfect capital mobility, if domestic interest rates are above world interest rates then a. capital outflows will drive domestic interest rates down. b. capital inflows will drive domestic interest rates down. c. current account deficits will drive domestic interest rates down. d. the central bank will have to intervene even if […]
Which of the following statements is (are) correct? According to the Feldstein-Horioka Saving Investment Puzzle a. countries with relatively low saving to income ratios have relatively high investment to income ratios. b. there is no correlation between investment and saving in developed countries. c. countries with a high ratio of saving to income have high […]
What do the Monetarist and Keynesian economists claim was the main cause of the Great Depression? (a) A contraction in supply (b) A downturn in demand (c) The falling federal deficit (d) All of the above ANSWER (b)
According to the Keynesian view, the focus of stabilization policies a. is to keep the economy at its equilibrium level in the face of shocks to aggregate demand. b. should be to keep the economy at its equilibrium level in the face of shocks to aggregate supply. c. is on the short run. d. All […]
Net migration can help fuel population growth which, in turn, provides a positive incentive for businesses to expand production and employment. Indicate whether the statement is true or false ANSWER TRUE
Young male adults provided the single largest group of migrants. This helped increase human capital in the U.S. Indicate whether the statement is true or false ANSWER TRUE
