According to Edward Denison, during the 1929-1982 period, real output grew at an annual rate of a. 1.4 percent. b. 0.6 percent. c. 2.9 percent. d. just below 1 percent. e. exactly one-half percent. ANSWER C
Date: September 10th, 2020
The Great Depression and the New Deal transformed the U.S. into which type of economy? (a) Laissez-faire (b) Socialist (c) Mixed (d) Communist ANSWER (c)
Date: September 10th, 2020
The Great Depression is still the subject of controversy, including the question(s) of (a) what caused the initial downturn. (b) why the economy contracted for so long (1929 to 1932) and why it contracted so much (real GNP fell about 30%). (c) whether government policy helped or hindered the recovery attempt. (d) all of the […]
Date: September 10th, 2020
The most significant cost to a central bank of reducing unemployment is the costs a. incurred by printing and distributing new money. b. of lower output. c. of higher real wages. d. of inflation. ANSWER D
Date: September 10th, 2020
In the long run, holding all else constant, inflation requires a decrease in the money supply relative to the output of goods and services—not enough money chasing too many goods. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The demographic trends in population growth and migration after the Civil War differed significantly from those established before the War. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
In a closed economy, there should be a close positive relationship between a. budget deficits and interest rates. b. trade deficits and budget deficits. c. savings and investment. d. investment and consumption. e. Both a and c. ANSWER E
Date: September 10th, 2020
Children can be viewed as retirement insurance and thus provide individuals with incentive to create large families. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Economies of scale refer to a. costs rising as the scale of production increases. b. costs falling as the scale of production increases. c. output rising as the level of inputs rises. d. the marginal product of labor diminishes as the quantity of labor increases. ANSWER B
Date: September 10th, 2020
Monetarists maintain that the increase in the money supply can explain the inflation of the 1970s and 1980s when one considers the bonds purchased by the Fed to finance the federal deficits of the period. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
