When two variables move in the same direction, they are said to be: A) unitary correlated. B) uncorrelated. C) positively correlated. D) a negatively correlated. ANSWER C
Date: September 2nd, 2020
What were the major reasons for the lack of sustained growth before modern times? What will be an ideal response? ANSWER There were two main reasons for the lack of sustained growth before modern times. These were: a) The pace of technological change before the year 1800 was slow and almost stagnant compared to […]
Date: September 2nd, 2020
Which of the following is a macroeconomic concept? A) The elasticity of supply of a good B) The per capita income of a country C) The average revenue earned by a firm D) The income elasticity of demand for a good ANSWER B
Date: September 2nd, 2020
Assuming all else equal, the credit supply curve shows the relationship between the quantity of credit supplied and the: A) real wage rate. B) real interest rate. C) income tax rate. D) inflation rate. ANSWER B
Date: September 2nd, 2020
The main reason people hold money is that A) money is intrinsically valuable. B) money is used to buy goods and services. C) money is power. D) money provides a standard of value. ANSWER B
Date: September 2nd, 2020
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
