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
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
