Which view of the causes of the Great Depression emphasizes the decline in the money supply which caused aggregate demand for goods and services to shrink, leading businesses to cut production and employment? (a) The Monetarists’ (b) The Keynesians’ (c) The Austrians’ (d) The International View ANSWER (a)
Date: September 10th, 2020
During the worst year of the Great Depression, according to the official statistics, about what percentage of the labor force was unemployed? (a) 10% (b) 15% (c) 25% (d) 35% ANSWER (c)
Date: September 10th, 2020
The U.S. had a low fertility rate in the early nineteenth century. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Monetarists assume that suppliers of labor a. always have perfect information about the real wage. b. base their decisions on the expected real wage. c. may or may not know the real wage. d. could not possibly have perfect information. ANSWER B
Date: September 10th, 2020
William J. Clinton (1993–2001) was the first U.S. president since the Great Depression to increase taxes to try to reduce the federal budget deficit. Indicate whether the statement is true or false ANSWER False (FDR was the first.)
Date: September 10th, 2020
Many rapidly developing countries in East Asia have pursued government policies, which encourage savings. According to the neoclassical growth model, if these policies stimulate savings but do not encourage technology growth, then these policies a. will have no effect on the level of output. b. will increase output growth permanently. c. will increase output growth […]
Date: September 10th, 2020
Assume perfect capital mobility. Under a fixed exchange rate system, expansionary fiscal policy causes the value of the dollar to _____, while expansionary monetary policy causes the value of the dollar to _____. a. rise; rise b. fall; fall c. fall; rise d. rise; fall ANSWER D
Date: September 10th, 2020
Population growth in the early nineteenth century was slow due to the lack of immigration. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The short-run Phillips curve shifts when there is a change in a. technology b. money demand. c. the expected price level. d. the labor force. e. all of the above. ANSWER E
Date: September 10th, 2020
Like Franklin D. Roosevelt (1933–45), William J. Clinton’s (1993–2001) deficit-reducing tax hikes pushed the economy into a recession. Indicate whether the statement is true or false ANSWER False (Only FDR’s tax hikes resulted in a recession.)
Date: September 10th, 2020
