The long run aggregate supply curve is vertical because A) a change in the level of prices will have no effect on real output in the long-run. B) the production possibilities curve is vertical. C) the aggregate demand curve is downward sloping. D) technology increases at a constant rate. ANSWER A
Date: September 2nd, 2020
Which of the following will cause the long-run aggregate supply curve to shift? I. Changes in technology II. Changes in government spending III. Changes in the money supply A) I only B) II only C) I, II, and III D) only I and II ANSWER A
Date: September 2nd, 2020
The classical model uses the assumption that A) all wages and prices are flexible. B) interest rates are not flexible. C) monopoly is widespread in the economy. D) economic markets are fragile and have no tendency to move towards an equilibrium. ANSWER A
Date: September 2nd, 2020
Refer to the above table. Suppose one country has a per capita real GDP of $1000 and another has a per capita real GDP of $10,000, or ten times larger. If both countries have a growth rate of 5 percent, how much larger will per capita real GDP be in the second country be than […]
Date: September 2nd, 2020
Suppose per capita real GDP grows by 3.5% per year. Based on the Rule of 70, approximately how many years will it take for the level of per capita real GDP to double (i.e., increase by 100%)? A) 10 years B) 35 years C) 20 years D) 3.5 years ANSWER C
Date: September 2nd, 2020
Refer to the above table. Country A has a per capita real GDP of $1000 and B has a per capita real GDP of $10,000. A is growing at a rate of 5 percent a year and B at a rate of 4 percent a year. After 50 years, how much larger is per capita […]
Date: September 2nd, 2020
Refer to the above table. If an economy’s current per capita real GDP is $3,000, and if its economy grows at an constant annual rate of 5 percent for 50 years, what will be its per capita real GDP at the end of that period? A) $21,330 B) $34,500 C) $55,200 D) $13,140 ANSWER […]
Date: September 2nd, 2020
Refer to the above table. You have a choice among four alternatives. Choice A lets you invest $250,000 at 4 percent; B lets you invest $125,000 at 6 percent; C lets you invest $62,500 at 8 percent, and D lets you invest $31,250 at 10 percent. Which choice will get you to $1 million faster? […]
Date: September 2nd, 2020
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
