Which of the following is a checkable and debitable account? A) a savings account B) a brokerage account with your stockbroker C) a checking account D) All of the above are checkable and debitable accounts. ANSWER C
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
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 […]
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
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
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
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
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 […]
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 […]
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