If population growth occurs while jobs are difficult to obtain or labor force participation does not increase A) there may be little or no increase in a nation’s labor resources. B) per capita GDP is likely to increase sharply. C) economic growth will be robust because any population gain is a plus. D) a nation’s […]
Date: September 2nd, 2020
The rate of growth in real GDP minus the rate of growth of the population is the A) rate of growth of nominal GDP. B) population growth rate. C) rate of growth of per capita real GDP. D) unemployment rate. ANSWER C
Date: September 2nd, 2020
Refer to the figure above. Which of the following statements is true when the credit demand curve is CD1 and the credit supply curve is CS1? A) At all rates of interest above 3% there will be a tendency for real interest rates to fall. B) At all rates of interest above 4% there will […]
Date: September 2nd, 2020
Which of the following would be considered the least liquid asset? A) shares of stock B) travelers checks C) currency D) checkable deposits ANSWER A
Date: September 2nd, 2020
The crowding out effect is often associated with A) a temporary increase in taxes. B) the reinforcing impact of state and local tax changes on federal tax changes. C) the impact of a tax rate increase when the aggregate supply function is horizontal. D) an increase in the interest rate caused by government borrowing. […]
Date: September 2nd, 2020
In the above table, the average propensity to save when disposable income is $5,000 is A) -0.1. B) 0.1. C) 0.0. D) 0.2. ANSWER C
Date: September 2nd, 2020
Reverse causality can create confusion between correlation and causation. What does reverse causality imply? What will be an ideal response? ANSWER Reverse causality is said to happen when the direction of cause and effect is mixed up in a study. This can lead to wrong conclusions. For example, researchers may claim that jogging causes […]
Date: September 2nd, 2020
A machinery used in a factory is a(n) ________ good. A) club B) capital C) inferior D) public ANSWER B
Date: September 2nd, 2020
Over the past decade, a nation’s real Gross Domestic Product (GDP) grew at a constant rate of 10 percent per year while its population grew 8 percent annually. Forecasters predict that during the coming decade, real GDP will continue to grow 10 percent annually, but the population growth rate is expected to drop to 6 […]
Date: September 2nd, 2020
If the level of investment in an economy is $4,000 and the GDP of the economy is $10,000, the savings rate in the economy must be: A) 40%. B) 44%. C) 30%. D) 20%. ANSWER A
Date: September 2nd, 2020
