All of the following will cause the reported growth rate in a country to change EXCEPT A) changes in productivity. B) population changes. C) a shift of the production possibilities curve. D) changes in the number of poor people in the country. ANSWER D
Date: September 2nd, 2020
Over time in a growing economy, the long run aggregate supply curve will A) shift inward to the left. B) shift outward to the right. C) become increasingly stee ANSWER B
Date: September 2nd, 2020
Aggregate supply is A) the horizontal summation of all supply curves for services. B) the sum of all planned production in the economy. C) the stock of all goods in the economy. D) the summation of all product supply curves. ANSWER B
Date: September 2nd, 2020
Why do very small differences in annual growth rates amount to big differences in the degree of long-term economic growth? A) because the slower-growing countries save too much B) because the annual growth rate is compounded over time C) because the faster-growing countries gain a political advantage over poorer countries, and use that advantage for […]
Date: September 2nd, 2020
In the classical model, an increase in aggregate demand will cause A) an increase in actual output, or Gross Domestic Product (GDP). B) a decrease in actual output, or Gross Domestic Product (GDP). C) a decrease in price level. D) an increase in price level. ANSWER D
Date: September 2nd, 2020
Classical economists assumed that A) wages were inflexible. B) individuals suffered from money illusion. C) prices were sticky. D) none of the above. ANSWER D
Date: September 2nd, 2020
An outward shift of the production possibilities curve demonstrates A) economic growth. B) an increased rate of inflation. C) a cyclical shock. D) a recession. ANSWER A
Date: September 2nd, 2020
The first systematic attempt to explain the determinants of the price level and national levels of income, employment, consumption and real Gross Domestic Product (GDP) was made by ________ economists. A) supply-side B) classical C) Keynesian D) monetarist ANSWER B
Date: September 2nd, 2020
The real output of the economy under conditions of full employment A) is long-run aggregate demand. B) is long-run aggregate supply. C) happens only when there is no inflation. D) is determined by the real-balance effect. ANSWER B
Date: September 2nd, 2020
Refer to the above table. How long would it take for a country to triple its GDP if the GDP grew at a 20 percent rate? A) 10 years B) 6 years C) 4 years D) 2 years ANSWER B
Date: September 2nd, 2020
