Currently, total government expenditures in the United States have totaled about:
a. one-tenth of GDP.
b. one-fifth of GDP.
c. 40 percent of GDP.
d. one-half of GDP.
QUESTION 2The long-run Phillips curve is a upward-sloping line at the natural rate of unemployment.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 3When OPEC raised the price of oil, it created a:
a. demand-pull inflation.
b. cost-push inflation.
c. demand-push inflation.
d. cost-pull inflation.
e. cost-push deflation.
QUESTION 4Currently, total private sector expenditures in the United States:
a. remained close to one third of GDP.
b. fell by half to 50 percent of GDP.
c. fell by half to 65 percent of GDP.
d. remained close to 60 percent of GDP.
QUESTION 5According to the natural rate hypothesis, the unemployment rate should equal 0 percent in the long run.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 6Cost-push inflation is due to:
a. labor cost increases.
b. energy cost increases.
c. raw material cost increases.
d. all of these.
QUESTION 7Currently, total government expenditures in the United States:
a. are close to 40 percent of GDP.
b. fell by half, to 10 percent of GDP.
c. nearly doubled to about 60 percent of GDP.
d. nearly tripled to about 60 percent of GDP.
QUESTION 8During the 1970s, the inflation rate and the unemployment rate were inversely related.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 9Which of the following statements is true?
a. Demand-pull inflation is caused by excess total spending.
b. Cost-push inflation is caused by an increase in resource costs.
c. If nominal interest rates remain the same and the inflation rate falls, real interest rates increase.
d. If real interest rates are negative, lenders incur losses.
e. All of these.
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