A ________ occurs when a country’s exports exceed its imports. A) trade surplus B) budget surplus C) trade deficit D) fiscal deficit ANSWER A
Date: September 2nd, 2020
A steady-state equilibrium refers to: A) an equilibrium in which the stock of physical capital remains constant over time. B) an equilibrium in which the inequality remains constant over time. C) an equilibrium in which the GDP per capita remains constant over time. D) an equilibrium in which the poverty rate remains constant over time. […]
Date: September 2nd, 2020
A higher population growth rate can potentially lead to a higher rate of growth in per capita real GDP if A) it leads to an increase in the amount of dead capital. B) young workers replace older workers. C) there is a greater labor force participation rate. D) it leads to greater democracy in a […]
Date: September 2nd, 2020
Which of the following assets is the most liquid in the United States? A) U.S. Treasury Bonds B) corporate bonds C) U.S. currency D) an antique car ANSWER C
Date: September 2nd, 2020
If d is the depreciation rate and K is the capital stock, the amount of investment required to keep the economy in a steady state is given by: A) I = d – K. B) I = d + K. C) I = d × K. D) I = d/K. ANSWER C
Date: September 2nd, 2020
The difference between ________ is known as the trade balance. A) consumption and imports B) investment and consumption C) exports and imports D) production and exports ANSWER C
Date: September 2nd, 2020
The Fed usually prefers the inflation rate to hover around ________. A) 6% B) 10% C) 2% D) 5% ANSWER C
Date: September 2nd, 2020
Political freedom can sometimes moderately reduce economic growth because A) campaign contributions rob the economy of investment. B) special interest groups may gain at the expense of the overall economy. C) most jobs are in unions that are politically connected. D) none of the above. ANSWER B
Date: September 2nd, 2020
A ________ occurs when a country’s imports exceed its exports. A) budget surplus B) trade deficit C) trade surplus D) fiscal deficit ANSWER B
Date: September 2nd, 2020
Which of the following statements is FALSE? A) The federal budget deficit in 2004 was about 4 percent of the GDP. B) During the past five years, the U.S. public debt has been increasing. C) The public debt of $25 billion is the accumulated debt of all U.S. individuals, firms, and institutions. D) A budget […]
Date: September 2nd, 2020
