Economic growth can be shown by A) a rightward shift in the aggregate supply curve. B) a leftward shift in the aggregate supply curve. C) a leftward shift in the production possibilities curve. D) no change in the aggregate supply curve. ANSWER A
Date: September 2nd, 2020
Labor productivity measures A) the growth of real output. B) real output per labor hour. C) the growth in the quantity of labor. D) the growth of per capita real GDP. ANSWER B
Date: September 2nd, 2020
In the classical model, real Gross Domestic Product (GDP) per year is A) determined by supply and demand conditions together. B) supply determined. C) demand determined. D) due to supply conditions plus the extent of government intervention in the economy. ANSWER B
Date: September 2nd, 2020
Economic growth is demonstrated by the LRAS as it A) becomes more vertical. B) shifts to the left. C) becomes more horizontal. D) shifts to the right. ANSWER D
Date: September 2nd, 2020
Saving differs from savings in that A) saving is a flow while savings is a stock. B) saving is both a flow and a stock while savings is a stock. C) saving is a stock while savings is a flow. D) saving is a stock while savings is both a flow and a stock. […]
Date: September 2nd, 2020
Consumption expenditures include all of the following EXCEPT A) going to a concert. B) having your house cleaned by Klean Maids. C) buying a pizza. D) purchasing a share of stock. ANSWER D
Date: September 2nd, 2020
Consumption goods A) include spending on machines and buildings so that goods can be produced in the future. B) are goods that are used to make other goods. C) include goods such as DVDs that firms hold in inventory. D) are only the goods bought by households for immediate satisfaction. ANSWER D
Date: September 2nd, 2020
Improvements in information technology over the past decade have enhanced labor productivity. What has been a likely result of this change? A) Unemployment has increased. B) Entrepreneurs no longer have an incentive to invest in information technology. C) Capital productivity has declined. D) The rate of economic growth has increased. ANSWER D
Date: September 2nd, 2020
Which of the following statements is FALSE? A) saving = disposable income – consumption B) consumption + saving = disposable income C) consumption = saving – disposable income D) disposable income – saving = consumption ANSWER C
Date: September 2nd, 2020
What is the shape of the long-run aggregate supply curve? Why? What will be an ideal response? ANSWER The long-run aggregate supply curve is vertical because, in the long run, people have full information about all relevant facts and make their decisions based only on relative prices and not on the absolute price level.
Date: September 2nd, 2020
