When looking at economic growth in a country, the distribution of output and income A) is shared equally. B) is skewed toward the lowest quintile of the population. C) generally follows predictable patterns. D) is not taken into consideration. ANSWER D
Date: September 2nd, 2020
The implication of Say’s law is that A) a barter economy is the most efficient economy. B) increased consumption today leads to increased production tomorrow. C) overproduction in a market economy is not possible. D) Gross Domestic Product is the same whether we use the expenditure approach or the income approach. ANSWER C
Date: September 2nd, 2020
An increase in the level of prices of goods and services will do what to the long-run aggregate supply curve? A) not shift the curve at all B) depends upon the long-run aggregate demand curve C) shift it to the right D) shift it to the left ANSWER A
Date: September 2nd, 2020
All the following are assumptions of the classical model EXCEPT A) pure competition exists. B) buyers and sellers react to nominal money prices rather than to relative prices. C) wages and prices are flexible. D) people are motivated by self-interest. ANSWER B
Date: September 2nd, 2020
Which of the following is NOT a benefit of economic growth? A) reduction in illiteracy B) improved health C) urban congestion D) longer lives ANSWER C
Date: September 2nd, 2020
Which of the following is a negative effect of economic growth? A) higher inflation B) environmental pollution C) higher unemployment D) all of the above ANSWER B
Date: September 2nd, 2020
Say’s law explains A) how long-run real Gross Domestic Product (GDP) stability is achieved in the Keynesian model. B) why economies experience business cycles. C) how the economy can go into recession. D) how long-term real Gross Domestic Product (GDP) stability is achieved in the classical model. ANSWER D
Date: September 2nd, 2020
A change in the growth rate of a country of one percentage point annually has A) a large impact on the economy in the current year, but not in the future. B) a large impact in the future due to compounding. C) a small impact in the current year, and smaller impact in the future […]
Date: September 2nd, 2020
The long-run aggregate supply curve will shift to the left when A) technology improves. B) new sources of oil are discovered. C) the price level increases. D) population decreases. ANSWER D
Date: September 2nd, 2020
The long-run aggregate supply curve will shift outward to the right when A) the price level decreases. B) the real-balance effect increases. C) there is economic growth. D) the amount of labor decreases. ANSWER C
Date: September 2nd, 2020
