In the determination of economic growth, political freedom A) is equally as important as economic freedom. B) contributes little to job growth. C) appears to be less important than economic freedom. D) is more important than economic freedom. ANSWER C
Date: September 2nd, 2020
With respect to economic freedom, which of the following is TRUE? A) Three out of four people live in nations with governments that grant residents high degrees of economic freedom. B) About three dozen nations with governments unwilling to grant much in the way of economic freedom are home to two-thirds of the world’s population. […]
Date: September 2nd, 2020
Frictional and structural unemployment both exist when A) the economy is at the peak of the business cycle. B) the economy is in long-run equilibrium. C) the economy is in an expansionary phase. D) the economy is in short-run equilibrium. ANSWER B
Date: September 2nd, 2020
What is the annual rate of growth of per capita real GDP if real GDP grows at a constant rate of 4 percent per year and the annual rate of population growth is 3 percent? A) 1 percent B) 3 percent C) 87 percent D) 4 percent ANSWER A
Date: September 2nd, 2020
When considering the demand for money curve, the interest rate A) is the price of holding money. B) varies negatively with the transactions demand for money. C) will have a positive relationship with the quantity of money demanded. D) is independent of the opportunity cost of money. ANSWER A
Date: September 2nd, 2020
If people expect the Fed to adopt a(n) ________ for several years, the long-run real interest rate will remain ________. A) contractionary fiscal policy; high B) expansionary fiscal policy; low C) expansionary monetary policy; low D) contractionary monetary policy; low ANSWER C
Date: September 2nd, 2020
Using a graph, analyze the Great Depression from a Keynesian perspective. What happened to unemployment? What will be an ideal response? ANSWER In the below figure, the equilibrium before the depression was at a price level of 100 and real GDP of $1 trillion. The depression was caused by a reduction in aggregate demand […]
Date: September 2nd, 2020
Scarcity can best be defined as a situation in which A) there are no buyers willing to purchase what sellers have produced. B) there are not enough goods to satisfy all of the buyers’ demand. C) there is more than enough money to satisfy consumers’ wants. D) the resources we use to produce goods and […]
Date: September 2nd, 2020
It has been noted that a country that grants a considerable amount of economic freedom will experience A) positive rates of per capita income growth. B) low levels of political freedom. C) dead capital. D) negative rates of per capita income growth. ANSWER A
Date: September 2nd, 2020
At the point at which planned real consumption spending is equal to real disposable income A) the consumption function is above the 45-degree line. B) the consumption function intersects the savings function. C) the consumption function intersects the 45-degree line. D) the consumption function is below the 45-degree line. ANSWER C
Date: September 2nd, 2020
