In 1820, when the nation began its westward movement in earnest, the median American was (a) less ...

In 1820, when the nation began its westward movement in earnest, the median American was
 
  (a) less than 17 years old.
  (b) about 20 years old.
  (c) about the same age as the median American today.
  (d) older than the median American today.

Question 2

If the government places a new tax on the firing of workers, then we would expect
 
  a. both the short run and long run Phillips curve to shift to the right.
  b. both the short run and long run Phillips curve to shift to the left.
  c. the long run Phillips curve remains unchanged while the short run Phillips curve shifts to the right.
  d. the short run Phillips curve remains unchanged while the long run Phillips curve shifts to the right.
  e. none of the above.

Question 3

In the neoclassical growth model, the rate of technological process is:
 
  a. 2 percent.
  b. 0 percent.
  c. exogenous and not explained.
  d. endogenous and explained by human capital accumulation.

Question 4

The government played a central role in directing the post-World War II economy, causing all of the following to occur except
 
  (a) The reduction of entitlements, such as Social Security and unemployment benefits.
  (b) Massive spending by the federal government, justified by the Cold War.
  (c) Enormously expanded government infrastructure spending on things like highways, airports, education and research and development.
  (d) There is no except; all of the above occurred.

Question 5

Assume perfect capital mobility and a fixed exchange rate system. Then, an increase in government spending would shift the
 
  a. LM schedule to the left.
  b. BP schedule to the right.
  c. BP schedule to the left.
  d. IS schedule to the right.

Question 6

Today, the Federal Reserve System can contract the money supply by
 
  (a) increasing the discount rate.
  (b) increasing reserve requirements.
  (c) selling U.S. Treasury and federal agency securities.
  (d) engaging in all of the above.

Question 7

All of the following were important structural changes in American capitalism during the period 196095 except
 
  (a) New technology in the form of automated (machine-guided) production processes
  (b) A capital-labor accord which allowed workers to share in productivity gains through wage increases, particularly during the 1950s and 1960s
  (c) An increase in self-sufficiency as the nation reduced its economic interdependence with other nations
  (d) A large and central role for government in directing the post-war economy

Question 8

Data on convergence suggests:
 
  a. poor countries are converging with the median country.
  b. rich countries are converging with other rich countries.
  c. only countries with the same populations are convergine.
  d. none of the above.

Question 9

What were the two main sources of population increases during the antebellum period?
 
  (a) a significant increase in the number of indentured servants and slaves
  (b) immigration and a natural increase in population
  (c) government policies providing incentive to procreate and advanced pre-natal care
  (d) longer life expectancies and high infant mortality rates

Question 10

Which of the following statements is (are) correct?
 
  a. Both the monetarists and classicists agree that output is completely supply determined, even in the short run
  b. The monetarists do not agree with the classical position that monetary policy cannot be used to influence output.
  c. According to both the monetarists and the classicists, output is determined by demand side factors in the short run
  d. None of the above

Question 11

When the U.S. economy expands, foreign investment in and immigration to the U.S. usually contracts.
 
  Indicate whether the statement is true or false

Question 12

The International View of the Great Depression blames the contraction in the U.S. economy on
 
  (a) the failure of the U.S. markets to permit a fall in aggregate prices under the
  gold standard or to devalue its exchange rate.
  (b) exports' and imports' large proportion of total GDP in the U.S.
  (c) Great Britain abandoning the gold standard.
  (d) all of the above.

Question 13

The Cold War was of overriding importance during the period after World War II for all of the following reasons except
 
  (a) It was an automatic pump primer which helped keep spending levels high in the overall economy.
  (b) It helped fuel growth of key sectors of the economy, such as aircraft manufacturing and computers.
  (c) It fostered economic growth and urbanization in many parts of the nation where military bases and defense factories were built.
  (d) It put people to work who would otherwise have been unemployed because without high levels of defense spending, the economy almost certainly would have lapsed back into a depression like the one of the 1930s.