The BP schedule will be steeper the a. more responsive capital flows are to the interest rate. b. less responsive capital flows are to the interest rate. c. smaller the marginal propensity to import. d. less likely an expansionary fiscal policy will lead to a balance of payments deficit. ANSWER B
Date: September 10th, 2020
Information and opportunity costs affected patterns of emigration to the U.S. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The long-run Phillips curve is consistent with a. a negative relationship between unemployment and the rate of expected inflation. b. the expected real wage being equal to the actual real wage. c. the actual price level being equal to the expected price level. d. no relationship between inflation and unemployment. e. all of the above […]
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
