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
Say’s law argues that I. overproduction is typical in a market economy. II. supply creates its own demand. A) I only B) II only C) Both I and II D) Neither I nor II ANSWER B
Date: September 2nd, 2020
Refer to the above table. Two countries have per capita real GDPs in 2010 of $5000. If country A has a 4 percent growth rate and Country B a 5 percent growth rate, what will the per capita real GDPs of each be in the year 2060? A) A: $15,000; B: $30,000 B) A: $40,000; […]
Date: September 2nd, 2020
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
