The Keynesian short-run aggregate supply curve is horizontal because A) it represents Say’s law. B) it reflects wage and price inflexibility. C) it represents the full employment level of real GDP. D) it reflects the absence of money illusion. ANSWER B
Date: September 2nd, 2020
When government expenditures are greater than tax revenues A) there will be budget surplus. B) the public debt will be reduced. C) there will be budget deficit. D) automatic stabilizers do not kick in. ANSWER C
Date: September 2nd, 2020
Refer to the table above. What is the average monthly wage? A) $612 B) $650 C) $558 D) $450 ANSWER C
Date: September 2nd, 2020
Suppose you pay $290.00 for a new tablet computer. This is an example of A) money as a store of value. B) money as a standard of deferred payment. C) barter. D) money as a medium of exchange. ANSWER D
Date: September 2nd, 2020
Other things remaining the same, a right shift in the supply curve will lead to: A) a decrease in the equilibrium price and an increase in the equilibrium quantity. B) an increase in the equilibrium price and the equilibrium quantity. C) an increase in the equilibrium price and a decrease in the equilibrium quantity. D) […]
Date: September 2nd, 2020
Why is investing in technology a better option than investing in labor or capital as a means to sustained growth? What will be an ideal response? ANSWER The main reason why investing in technology is a better option than investing in labor or capital as a means to sustained growth is that investing in […]
Date: September 2nd, 2020
All of the following are listed in the text as being keys to economic development EXCEPT A) a system of property rights. B) an open economy. C) an educated population. D) a higher level of protectionism. ANSWER D
Date: September 2nd, 2020
When the credit demand curve is relatively steep: A) the quantity of credit demanded is relatively sensitive to changes in the tax rates. B) the quantity of credit demanded is not very sensitive to changes in the real interest rate. C) the quantity of credit demanded is relatively sensitive to changes in the real interest […]
Date: September 2nd, 2020
According to the Ricardian equivalence theorem, a tax cut that increases the government budget deficit will have A) a positive effect on aggregate demand because people look at changes in taxes or government spending in the present. B) no effect on aggregate demand because people only look at changes in taxes or government spending in […]
Date: September 2nd, 2020
If a number greater than the mean of a series of observations is added to the series, the new mean is: A) smaller than the original mean. B) greater than the original mean. C) same as the original mean. D) either greater or smaller than the original mean depending on the number of observations in […]
Date: September 2nd, 2020
