The fact that long-run growth in the U.S. has been relatively stable is consistent with the ______ model. a. endogenous growth. b. supply-side. c. Keynesian. d. neoclassical growth. e. none of the above. ANSWER D
Date: September 10th, 2020
When the federal government makes no attempt to take corrective action, markets return a recessed economy to full employment levels of production by (a) laying off workers. (b) lowering wages. (c) dropping prices. (d) doing all of the above. ANSWER (d)
Date: September 10th, 2020
An decrease in domestic savings a. decreases foreign borrowing. b. will improve the trade balance. c. will increase exports. d. will increase foreign borrowing. ANSWER D
Date: September 10th, 2020
In absolute terms and relative to other countries, what happened to U.S. growth rates in productivity as measured by output per paid hour in the late 1960s and 1970s? (a) They increased. (b) They stayed the same. (c) They fell. (d) They fell early on and then increased past their previous levels. ANSWER (c)
Date: September 10th, 2020
Prices, on average, increased in the food market; the demand for food had simply grown faster than supply from the end of the Civil War in 1865 to the beginning of World War I in 1913. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The American Revolution resulted in (a) a loss of British military assistance, governmental expertise, judicial assistance and public funding for wars. (b) greatly expanded rights for wage workers and indentured servants. (c) significant change with respect to market behaviors, ownership of property and individual freedom. (d) a dramatic change in laws and the ownership of […]
Date: September 10th, 2020
The third monetarist proposition asserts that in the short run, a. changes in money demand are the dominant factor causing cyclical movements in output and employment. b. money supply is only one of many factors resulting in cyclical movements in output and employment. c. money primarily influences the price level and other nominal magnitudes. d. […]
Date: September 10th, 2020
In a system of flexible exchange rates, a reduction in the money supply will cause a. a rise in the value of the dollar relative to foreign currencies. b. a fall in the value of the dollar relative to foreign currencies. c. no change in the value of the dollar relative to foreign currencies. d. […]
Date: September 10th, 2020
Between the 1921 recession and 1929, the U.S. economy was described as healthy. Which of the following changes in economic indicators is correctly stated and supports this claim? (a) Real Gross Domestic Product (RGDP) increased per capita (b) There were increases in real income but they were more unequally distributed (c) Consumer spending on credit […]
Date: September 10th, 2020
A liquidity trap is a. the vertical portion of the LM schedule. b. the horizontal portion of the LM schedule. c. a situation where a given change in the money stock induces a large reduction in the interest rate. d. Both a and c e. Both b and c ANSWER B
Date: September 10th, 2020
