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
The per capita GDP for Japan in 2014 was $48,500 and in 2015 was $49,470. How much did the Japanese per capita GDP grow in 2015? A) 2 percent B) -2 percent C) 3 percent D) Cannot be determined without further information ANSWER A
Date: September 2nd, 2020
Classical economists tend to A) support Say’s law. B) see unemployment as a persistent economic problem. C) reject the equality of savings and investment. D) believe in Keynesian economics. ANSWER A
Date: September 2nd, 2020
The long-run aggregate supply curve occurs at the level of real GDP consistent with A) no inflation. B) the natural rate of unemployment. C) individuals’ tastes and preferences. D) low levels of inflation. ANSWER B
Date: September 2nd, 2020
The curve in the above figure will shift to the right when A) the price level falls. B) the proportion of the population that is elderly increases. C) population falls. D) technology increases. ANSWER D
Date: September 2nd, 2020
According to the classical model, the income generated by production is A) always insufficient to purchase all the goods and services produced. B) enough to purchase all the goods and services produced. C) fully spent on savings. D) enough to meet the needs of everyone in society. ANSWER B
Date: September 2nd, 2020
A constant rate of U.S. economic growth over a given period of years would involve A) adding the same amount of real dollars to real GDP per capita each year. B) compounding the percentage increase in real GDP per capita over the years. C) adding the same amount of nominal dollars to real GDP per […]
Date: September 2nd, 2020
