If the long-run real interest rate falls, ________. A) unemployment increases B) investment by firms decreases C) the demand for loans decreases D) investment by firms increases ANSWER D
Date: September 2nd, 2020
According to Keynesian economics, if there are unutilized resources in the economy and aggregate demand increases A) real GDP will fall and price level will remain constant. B) real GDP will rise and price level will remain constant. C) real GDP will rise and price level will fall. D) real GDP will rise and price […]
Date: September 2nd, 2020
Over the last twenty years, real GDP in the U.S. economy has increased and there has been inflation. This indicates that A) aggregate demand has been constant while aggregate supply has increased. B) aggregate demand has increased more than aggregate supply. C) aggregate demand has increased while aggregate supply has been constant. D) aggregate demand […]
Date: September 2nd, 2020
You are likely to learn about ________ in your macroeconomics class. A) the price elasticity of demand for a good B) the average revenue and cost curves of a firm C) the Law of Diminishing Marginal Utility D) the annual growth rate of an economy’s output ANSWER D
Date: September 2nd, 2020
When policy makers base their actions on a rule there is A) rationalization policy making. B) passive policy making. C) rational expectations policy making. D) active policy making. ANSWER B
Date: September 2nd, 2020
Which of the following statements is true? A) Correlation can only arise when causation is not present. B) Causation can only arise when correlation is not present. C) Causation arises when there is correlation between two variables, and can also arise even when there is no correlation. D) Correlation arises when there is causation and […]
Date: September 2nd, 2020
A fiduciary monetary system is A) fully backed by gold. B) dependent on barter for exchanges of goods and services. C) dependent on the public’s faith to accept the currency. D) one which cannot have any inflation. ANSWER C
Date: September 2nd, 2020
Describe the Malthusian Cycle. What will be an ideal response? ANSWER Malthusian cycle refers to the preindustrial pattern in which increases in aggregate income lead to an expanding population, which in turn reduces income per capita and puts a downward pressure on population. The cycle starts with an increase in GDP above the subsistence […]
Date: September 2nd, 2020
Gross public debt is A) the total value of budget deficits plus budget surpluses over the past five years. B) an excess of government spending over government revenues during a given time period. C) a situation in which the government’s spending is exactly equal to the total taxes and other revenues it collects during a […]
Date: September 2nd, 2020
The credit supply curve is: A) horizontal. B) vertical. C) downward sloping. D) upward sloping. ANSWER D
Date: September 2nd, 2020
