The South’s post-Civil War backwardness was due to all of the following except (a) extensive wartime destruction of life and property. (b) the fiscal disaster of the Confederacy, whereby nine tenths of the state banks in the South vanished. (c) the price of cotton was increasing, as it had prior to the Civil War, thus […]
Over the last 40 years in the U.S. a. output and real wages have increased, while the capital-to-labor ratio has remained constant. b. output, real wages, and the capital-to-labor ratio have all increased. c. output has increased while real wages and the capital-to-labor ratio has remained constant. d. output and real wages have increased, while […]
In the monetarist view, if there is an increase in money growth then a. the money supply and inflation will grow proportionally, with no effect on output and employment. b. the money supply grows faster than the inflation rate, with unfavorable effects on output and employment. c. the money supply grows faster than the inflation […]
Prices rose strongly during the Vietnam War (1964–1974), and only the adroit monetary and fiscal policy management of the Carter administration (1976–1980) managed to get inflation under control. Indicate whether the statement is true or false ANSWER FALSE
A reduction in national savings will a. increase foreign capital flows into the country. b. reduce domestic investment. c. reduce domestic interest rates. d. both a and b. e. none of the above. ANSWER D
Many of the Founding Fathers considered the emancipation of slaves to be (a) a necessary evil in overcoming the British during the war. (b) less important than the issues of whether blacks should be prevented from coming to the United States and whether freed slaves should be deported. (c) paramount in establishing the new nation […]
According to the monetarists, a. stable growth in the money supply is needed for economic stability. b. aggregate demand is unstable, mostly because of unstable investment demand. c. there is a need for fiscal policies to stabilize output. d. stable money growth is not needed for the economy to be stable. ANSWER A
The federal spending policies of the Great Depression were clearly expansionary and helped return the U.S. economy to the low levels of unemployment experienced during the 1920s. Indicate whether the statement is true or false ANSWER False (Expansionary fiscal policy did not succeed on either one of these fronts.)
Endogenous growth theory rejects the assumption of exogenous a. production functions. b. knowledge. c. technology. d. both b and c. d. all of the above. ANSWER D
The Darby (1976) revisions of the 1930s unemployment data show that if you count public employment, then the 1930s were not especially severe by historical standards. Indicate whether the statement is true or false ANSWER FALSE
