The evidence shows that both the U.S. steel and auto industries seem to have lost their vigor for growth and competitive edges in the global marketplace. Indicate whether the statement is true or false ANSWER TRUE
In answer to the question “How did Britain affect American economic growth?” Hughes and Cain (2011) reach what conclusion? (a) The colonies were launched with English institutions, and they were allowed to modify them to meet local needs. In exchange for their investment in the colonies, the British expected the American colonies to produce and […]
Monetarists believe that changes in the money stock a. have an immediate effect on the level of income. b. will always have a persistent impact on output for more than two years. c. do not affect the level of income to any great extent. d. have a persistent impact on output for as long as […]
According to supply-siders, an switch from taxing income to taxing consumption to will a. lead to a permanent increase in output-per-worker. b. lead to a temporary increase in output-per-worker. c. lead to a decline in output-per-worker. d. not change output-per-worker. ANSWER A
Wartime mobilization during World War I raised the shares of income going to labor. This increase continued through the 1920s. Indicate whether the statement is true or false ANSWER FALSE
The evidence indicates that during the 1770s, the American colonists were (a) among the most heavily taxed people in the European world. (b) among the most lightly taxed people in the European world. (c) taxed at a rate that was similar to other people in the European world. (d) taxed at rates that can’t be […]
There has been a massive relocation of heavy industry from the U.S. Northeast and upper Midwest to the “Sun Belt.” Indicate whether the statement is true or false ANSWER False (it is a myth.)
Monetarists assume that people form their expectations only by a. looking forwards b. looking backwards. c. using all available information. d. using publicly available forecasts. ANSWER B
The official reserve transactions balance in the United States balance of payments accounts is a. reflects the difference between government spending and total taxes. b. negative if a current account deficit exceeds a capital account surplus. c. positive if a current account deficit exceeds a capital account surplus. d. none of the above ANSWER […]
The current international monetary system is best described as a a. fixed rate system. b. completely flexible rate system. c. gold standard. d. mercantilist system. e. managed floating rate system. ANSWER E