With respect to Friedman’s natural rate theory, expansionary monetary policies can a. move output above the natural rate but leave unemployment at the natural rate in the short-run. b. only affect inflation and not unemployment in the long-run. c. leave output at its natural rate with a simultaneous decrease in the natural rate of employment. […]
Stagflation can be explained by a a. shift in the short run Phillips curve to the left. b. shift in the short run Phillips curve to the right. c. a movement along the short run Phillips curve to the right. d. a movement along the short run Phillips curve to the left. ANSWER B
The depression of the 1930s was (a) the first depression in the nation’s history. (b) not the first but the most serious depression in the nation’s history. (c) not the first depression in the nation’s history and no more serious than some of the others. (d) not as serious as the depressions of the 1840s […]
According to the neoclassical growth model, economic growth in the steady state occurs because of a. increasing populations, which increase the demand for consumption. b. exogenous increases in technology. c. international trade. d. active governments, which stimulate consumption through government spending. e. all of the above. ANSWER B
To restrict a wilderness area in the public domain to a particular group in the general public, say the motorists or snowmobilers of today, is (a) democratic. (b) consistent with Thomas Jefferson’s view on federal ownership of land. (c) undemocratic. (d) non-discriminatory. ANSWER (c)
The data show that the American national income grew fast enough—even when immigration rates are taken into account—to produce rising income per capita between 1860 and 1910. Indicate whether the statement is true or false ANSWER TRUE
Which of the following policies is not aimed at stimulating technological progress? a. subsidies to public universities. b. tax breaks on stock gains. c. tax breaks on research and development. d. the granting of patents. ANSWER B
The Economic Stabilization Act of 1970 gave private industry the right to establish wage and price controls, but President Nixon vetoed this power. Indicate whether the statement is true or false ANSWER FALSE
The “Walker thesis,” that falling birth rates among native-born Americans was due to immigration, is reinforced by the view that immigrants were a direct capital transfer from Europe to America. Indicate whether the statement is true or false ANSWER TRUE
A rightward shift of the BP curve occurs with a a. fall in the exchange rate. b. cut in taxes. c. decrease in government spending. d. an increase in exports. ANSWER D
