If short-run aggregate supply is upward sloping, the assumption is that A) prices are perfectly sticky. B) prices are set by government mandate. C) prices adjust gradually. D) prices are constant. ANSWER C
Date: September 2nd, 2020
Structural unemployment may result from all of the following factors EXCEPT A) improved elementary and secondary education. B) union wage contracts. C) government-imposed licensing arrangements that restrict entry into certain professions. D) welfare and unemployment benefits. ANSWER A
Date: September 2nd, 2020
According to the United Nations, the largest expected growth in population for the coming decades will occur on which continent? A) South America B) Africa C) Europe D) North America ANSWER B
Date: September 2nd, 2020
The long-run real interest rate is the long-run nominal interest rate ________. A) minus inflation expectations B) plus all taxes C) plus inflation expectations D) minus all taxes ANSWER A
Date: September 2nd, 2020
People hold money as an asset rather than other assets because A) it holds its value. B) there is no cost to holding money as an asset. C) it grows in value. D) it is highly liquid. ANSWER D
Date: September 2nd, 2020
If the quantity of credit demanded in a market exceeds the quantity of credit supplied in the market: A) the real rate of interest tends to rise. B) the unemployment rate tends to fall. C) the rate of inflation tends to rise. D) the real rate of interest tends to fall. ANSWER A
Date: September 2nd, 2020
Which of the following statements is true? A) Randomization allows for classification of participants according to their choice. B) The subjects in the treatment group and the control group of an experiment are treated identically, except along a single dimension. C) Randomization is not used in medical experiments. D) The subjects in the treatment group […]
Date: September 2nd, 2020
Refer to the scenario above. What will be the capital stock in the economy in the current year, if the capital stock in the last year was worth $600? A) $1200 B) $1040 C) $900 D) $1000 ANSWER B
Date: September 2nd, 2020
What types of unemployment will still exist when the economy is at the natural rate of unemployment? A) frictional, structural, and cyclical unemployment B) frictional and cyclical unemployment only C) frictional and structural unemployment only D) structural and cyclical unemployment only ANSWER C
Date: September 2nd, 2020
If persistent inflation was due to declines in long-run aggregate supply, what pattern would be observed? A) Only prices of services would increase; prices of goods would remain constant. B) Increases in the price level would occur simultaneously with increases in real GDP. C) Increases in the price level would occur simultaneously with decreases in […]
Date: September 2nd, 2020
