Fertility refers to: A) the ratio of deaths in an area to the population of the area. B) the number of children per adult or per woman of childbearing age. C) the ability of an individual to read or write in at least one language. D) the average period that an individual may be expected […]
Date: September 2nd, 2020
Suppose total planned expenditures equal $20 trillion when the value of the price level is 100. If the price level drops to 90, total planned real expenditures will equal A) more than $20 trillion. B) $20 billion. C) less than $20 trillion. D) None of the above: Cannot be determined without additional information. ANSWER […]
Date: September 2nd, 2020
Identify the correct statement. A) Countercyclical monetary policy stimulates the economy during a recession by shifting the labor demand curve to the left. B) Countercyclical fiscal policy stimulates the economy during a recession by shifting the labor demand curve to the left. C) Countercyclical monetary policy slows down the growth rate of an economy during […]
Date: September 2nd, 2020
If the labor demand curve shifts to the right due to a government policy during a recession, and if wages are flexible, ________. A) real wages will increase B) real wages will decrease C) prices will fall D) unemployment will increase ANSWER A
Date: September 2nd, 2020
Factors that cause a decrease in the demand for credit at a given real interest rate cause: A) the credit demand curve to shift to the right. B) an upward movement along the credit demand curve. C) the credit demand curve to shift to the left. D) a downward movement along the credit demand curve. […]
Date: September 2nd, 2020
The average propensity to consume is A) real consumption expenditures divided by real saving. B) real saving divided by real consumption expenditures. C) real consumption expenditures divided by real disposable income. D) real disposable income divided by real consumption expenditures. ANSWER C
Date: September 2nd, 2020
What is a primary determinant of the asset demand for money? I. the interest rate II. the opportunity cost of holding money III. the supply of money A) I only B) III only C) both I and II D) both II and III ANSWER C
Date: September 2nd, 2020
The Laffer curve A) initially slopes upward as increasing tax rates lead to increasing tax revenue but eventually will slope downward as increasing tax rates lead to decreasing tax revenue. B) slopes upward throughout its range since increasing tax rates will always lead to increases in tax revenue. C) is horizontal because tax revenue is […]
Date: September 2nd, 2020
Which of the following is the most liquid asset? A) currency B) shares of stock C) short-term treasury bonds D) small denomination time deposits ANSWER A
Date: September 2nd, 2020
To find an economy’s long-run equilibrium price level, locate the point where ________ and ________ cross and look to the left. A) long-run aggregate supply; aggregate demand B) aggregate demand; short-run aggregate supply C) aggregate demand; price level D) demand; supply ANSWER A
Date: September 2nd, 2020
