In 1933 the unemployment rate was about 25%. This percentage (a) is probably quite accurate because the data on unemployment collected by the federal government was quite good at the time. (b) is probably too high because some people with jobs claimed to be unemployed so that they could collect unemployment compensation payments. (c) is […]
The number of people living in urban areas fell after the Civil War and then increased as World War I approached. Indicate whether the statement is true or false ANSWER FALSE
In the neoclassical growth model, convergence is conditional upon two countries having a. the same savings rates. b. the same depreciation rates. c. the same technology growth rates. d. the same population growth rates. e. all of the above. ANSWER E
The Keynesian model a. assumes a stable, downward sloping Phillips curve in the short run. b. implies a horizontal Phillips curve in the long run. c. shows that the Phillips curve is can be downward or upward sloping in the short run. d. differs from Friedman’s analysis pertaining to the vertical long-run Phillips curve. […]
Immigrants were valued as a vital source of labor and, consequently, they were greeted with open arms after the 1830s. Indicate whether the statement is true or false ANSWER FALSE
Regarding business conditions during the 1930s, which of the following events did not occur? (a) The number of patents applied for declined. (b) The number of mergers between companies increased in an attempt to increase their consolidated strength. (c) Some interest rates, such as the prime rate, fell to less than 1%. (d) In the […]
According to Edward Denison, the major source of labor productivity is a. improvements in labor quality. b. economies of scale. c. the changing composition of the labor force. d. technological progress. e. education per worker. ANSWER D
The nonwhite percentage of the U.S. population rose after the Civil War. Indicate whether the statement is true or false ANSWER FALSE
According to monetarists, the natural rate theory a. denies the tradeoff between inflation and output. b. argues that there is a stable tradeoff between inflation and output. c. shows that activist policies work best. d. believes that the Phillips curve relationship breaks down when policymakers attempt to use it. ANSWER D
In an open economy, there should be a a. close positive relationship between investment and savings. b. a close positive relationship between trade deficits and investment. c. a negative relationship between trade deficits and savings. d. a positive relationship between a country’s savings rate and higher domestic interest rates. ANSWER C
