An increase in the amount of physical capital will cause A) an increase in both aggregate demand and real GDP, but have no effect on the price level. B) an increase in both aggregate supply and real GDP, but have no effect on the price level. C) aggregate demand and aggregate supply to increase by […]
Date: September 2nd, 2020
The amount of funds the Social Security system has loaned the federal government is A) excluded from the net public debt. B) added to the gross public debt to calculate the net public debt. C) included in the net public debt. D) not included in the gross public debt. ANSWER A
Date: September 2nd, 2020
All else equal, a decrease in government borrowing is likely to cause a(n): A) upward movement along the credit demand curve. B) rightward shift of the credit demand curve. C) leftward shift of the credit demand curve. D) downward movement along the credit demand curve. ANSWER C
Date: September 2nd, 2020
The idea that creating incentives for individuals and firms to increase productivity leading to an increase in long-run aggregate supply is A) the Ricardian equivalence theorem. B) demand-side economics. C) supply-side economics. D) consistent with crowding out. ANSWER C
Date: September 2nd, 2020
The reason we are willing to accept money with no intrinsic value is that A) the money supply is backed by an equal amount of gold and silver. B) we have a fiduciary monetary system in which currency has both acceptability and predictability of value. C) the value of the money varies directly with changes […]
Date: September 2nd, 2020
Which of the following statements is true? A) The demographic transition of the 19th century led to a decrease in life expectancy across the Western world. B) Until the demographic transition in the 19th century, they were recurrent Malthusian cycles. C) The demographic transition of the 19th century led to an increase in fertility across […]
Date: September 2nd, 2020
Assume that the market for cell phones comprises two buyers and two sellers. The following table shows the demand and supply of cell phones at different prices. Using the information in the table, determine the market equilibrium price and quantity. Price ($) Cell Phones Demanded (Buyer 1 ) Cell Phones Demanded (Buyer 2 ) 10 […]
Date: September 2nd, 2020
Savers are willing to lend out money because: A) they prefer to spend money in the future rather than today. B) the rate of inflation in an economy is normally positive. C) of altruism. D) the rate of inflation in an economy is normally negative. ANSWER A
Date: September 2nd, 2020
Supply-side economics A) promotes increasing taxes to create additional revenue for government spending. B) promotes expansionary fiscal policy by increasing government spending. C) is based on the Ricardian equivalence theorem. D) promotes reducing taxes to create incentives to increase productivity. ANSWER D
Date: September 2nd, 2020
In a fiduciary monetary system, the value of the money issued by a government is based on A) the ability to convert it to some asset of value, like silver. B) the gold held in that government’s vaults. C) public confidence in that currency’s acceptability and predictability of value. D) its being made out of […]
Date: September 2nd, 2020
