The value of a country’s exports during a particular year was $610,000 and the value of its imports was $995,000. Which of the following is true? A) The country ran a fiscal deficit of $605,000 during that year. B) The country ran a trade surplus of $385,000 during that year. C) The country ran a […]
Date: September 2nd, 2020
A trade-off refers to A) sacrificing one thing for another. B) deciding who consumes the products produced in an economy. C) allowing the government and other organizations to choose for us. D) holding other variables fixed. ANSWER A
Date: September 2nd, 2020
The right to openly support and democratically select national leaders is A) political freedom. B) capital freedom. C) population freedom. D) economic freedom. ANSWER A
Date: September 2nd, 2020
The two ways in which deficit spending can impose a burden on future generations are A) by requiring future generations to face lower government spending and to utilize a smaller stock of human capital. B) by requiring future generations to face higher taxes and to work with a lower accumulated stock of capital goods. C) […]
Date: September 2nd, 2020
From 1950 until the late 1980s, the natural rate of unemployment in the United States A) trended upward. B) fell sharply as government retraining programs helped put the unemployed back to work. C) cycled up and down in tandem with the actual rate of unemployment. D) rose sharply, always exceeding the actual rate of unemployment. […]
Date: September 2nd, 2020
To compensate for the possibility of indirect crowding out, a government engaging in expansionary policy aimed at eliminating a recessionary gap could A) reduce taxes rather than increase government spending. B) increase spending less than the simplest Keynesian model would predict. C) both reduce taxes and reduce spending to be able to achieve full employment. […]
Date: September 2nd, 2020
The relationship between the quantity of money balances demanded and the interest rate is A) contractionary monetary policy. B) determined by open market operations. C) negative. D) the reserve requirements. ANSWER C
Date: September 2nd, 2020
Of the items in the following lists, which go from most liquid to least liquid? A) a house, a six-month certificate of deposit, shares of stock, a checking account B) a checking account, a certificate of deposit, shares of stock, a house C) a checking account, a house, a six-month certificate of deposit, shares of […]
Date: September 2nd, 2020
The quantity theory of money implies that over the long run, the inflation rate will ________. A) equal the nominal interest rate B) equal the growth rate of M2 minus the growth rate of real output C) equal the growth rate of M2 plus the growth rate of real output D) equal the velocity of […]
Date: September 2nd, 2020
From the late 1980s to 2000, the natural rate of unemployment A) fluctuated up and down, following the path of the actual rate of unemployment. B) gradually declined. C) climbed sharply. D) held constant. ANSWER B
Date: September 2nd, 2020
