________ is the study of economic aggregates and the economy as a whole. A) Ergonomics B) Econometrics C) Macroeconomics D) Microeconomics ANSWER C
Date: September 2nd, 2020
Other things being equal, what is the effect of deficit spending on credit markets? A) The supply of credit will increase while the demand for credit remains the same. B) The demand for credit increases while the supply of credit remains constant. C) Both the demand for credit and the supply of credit will decrease. […]
Date: September 2nd, 2020
Which of the following statements is true? A) If the opportunity cost of current consumption is high, people will save less. B) If the opportunity cost of current consumption is high, the inflation rate will increase. C) If the opportunity cost of current consumption is high, the unemployment rate will decrease. D) If the opportunity […]
Date: September 2nd, 2020
A ________ in the long-run real interest rate ________ household’s demand for durable goods. A) fall; increases B) rise; increases C) rise; does not affect D) fall; lowers ANSWER A
Date: September 2nd, 2020
Which of the following is an example of a macroeconomic aggregate? A) Total fixed cost faced by a firm B) Income earned by a household C) Profit earned by an entrepreneur D) The annual inflation rate ANSWER D
Date: September 2nd, 2020
Define subsistence level. What happens if the income in an economy exceeds the subsistence level in Malthus cycle? What will be an ideal response? ANSWER The subsistence level is the minimum level of income per person that is generally necessary for the individual to obtain enough calories, clothing, and shelter to survive. If the […]
Date: September 2nd, 2020
The horizontal short-run aggregate supply curve A) assumes that wages and all other input prices are constant. B) assumes that opportunity cost is constant. C) shows that real GDP can be increased only when prices increase. D) assumes that there is full employment in the economy. ANSWER A
Date: September 2nd, 2020
Which of the following statements is true? A) An increase in the nominal wage rate leads to a decrease in the real wage rate if the price level is stable. B) In an economy which has a positive inflation rate, the real wage rate is always greater than the nominal wage rate. C) An increase […]
Date: September 2nd, 2020
A fall in the long-run real interest rates leads to a ________. A) leftward shift of the labor supply curve B) leftward shift of the labor demand curve C) rightward shift of the labor supply curve D) rightward shift of the labor demand curve ANSWER D
Date: September 2nd, 2020
Which of the following statements identifies a difference between correlation and causation? A) Correlation occurs when one thing directly affects another, whereas causation implies a mutual relationship between two things. B) Causation cannot arise when correlation is present, and correlation cannot arise when causation is present. C) Correlation implies a mutual relationship between two things, […]
Date: September 2nd, 2020
