The Monetarist model differs from the classical model in that a. changes in aggregate demand, not aggregate supply, drive changes in output. b. changes in the money supply drive changes in inflation inflation. c. changes in aggregate supply, not aggregate demand, drive changes in ouput. d. money demand is not always stable. e. none of […]
The primary difference between the neoclassical growth model and endogenous growth models is that a. the neoclassical growth model assumes that technology is exogenous. b. endogenous growth models attempt to explain movements in technology within the model. c. changes in savings rates can affect growth in the long-run in endogenous growth models. d. both a […]
What did the growing inequality of income during the 1920s indicate? (a) That consumption expenditures would tend to weaken even though total income continued to rise (b) That spending for goods and business incentives to produce those goods became increasingly dependent on the wealthy (c) That the economy became more vulnerable to any shock, such […]
Industrial growth and location changed while manufacturing employment rose in the Sun Belt and fell in the Frost Belt. This growth and relocation were primarily due to the relocation of plants, functions and people moving from the Frost Belt to the Sun Belt. Indicate whether the statement is true or false ANSWER FALSE
Which of the following statements is (are) correct? Under a floating exchange rate system a. dramatic swings in the dollar have become less common the last 20 years. b. the dollar has exhibited considerable volatility, particularly over the last 20 years. c. the value of the dollar has been targeted within a specific range. d. […]
Governments, not markets, have the best record of allocating investment resources into those projects with the highest expected rate of return. Indicate whether the statement is true or false ANSWER FALSE
People have incentive to efficiently and effectively use land in the public domain or held by a communal group. Indicate whether the statement is true or false ANSWER FALSE
A trade surplus could be balanced by all of the following except a. borrowing from domestic citizens. b. selling domestic assets to foreigners. c. borrowing from foreigners. d. selling foreign assets already owned by U.S. citizens to foreigners. ANSWER A
The stage of industrial development during the early part of the 20th century is usually referred to as Fordism. The characteristics of this system include all of the following except (a) Moving assembly-line production (b) Mass production of relatively inexpensive consumer goods (c) The extensive use of skilled labor to produce complex consumer goods (d) […]
The 1920s is sometimes described as the decade representing the emergence of “mass society.” This refers to developments in all of the following except (a) Production methods and communication systems (b) Consumption patterns and installment credit (c) Attitudes and culture (d) There is no “except”; all of the above are part of the emergence of […]
