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
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 […]
Date: September 10th, 2020
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 […]
Date: September 10th, 2020
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)
Date: September 10th, 2020
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 […]
Date: September 10th, 2020
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
Date: September 10th, 2020
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
Date: September 10th, 2020
In the period 1960–95, (a) the relations between capital and labor (owners and workers) continued to be as hostile and violent as they were in the 1930s and earlier. (b) the relations between capital and labor (owners and workers) continued to be cooperative and peaceful, as they had been throughout U.S. history. (c) an accord […]
Date: September 10th, 2020
In the period 1960–95, the federal government (a) played, in general, a much larger role in the economy during this period than prior to World War II. (b) played a small role in the economy, similar to the 1920s. (c) eliminated most of the major programs for the federal government that were established by the […]
Date: September 10th, 2020
In order to explain the relative sizes of families in urban versus rural environments, some economists viewed children as investment or durable consumptions goods, respectively. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
