Keynesian and classical theories agree that:

Keynesian and classical theories agree that:
 
  a. AS is upward sloping in the short-run.
  b. AS is vertical in the long-run.
  c. sustained AD shocks can also shift AS in the long-run.
  d. all of the above.

Question 2

The American Revolution changed the basic structure of private property rights inherited during the colonial period.
 
  Indicate whether the statement is true or false

Question 3

According to the theory of hysteresis, a prolonged recession will:
 
  a. decrease the natural rate of unemployment.
  b. increase cyclical unemployment.
  c. decrease the sacrifice ratio.
  d. increase the natural rate of unemployment.

Question 4

The founders of the U.S. Constitution clearly understood how to write a document capable of producing the amount of wealth presently accumulated in the U.S.
 
  Indicate whether the statement is true or false

Question 5

Internal and external economies positively contributed to U.S. industrialization.
 
  Indicate whether the statement is true or false

Question 6

The objections to the Walsh-Healy Act of 1936, which mandated prevailing wages in government employment,
 
  (a) concerned the tendency of government wages to undercut those of the private sector.
  (b) came from the labor unions.
  (c) held that unemployment would be maintained artificially high.
  (d) held that payment of prevailing wages would reduce the national debt too slowly.

Question 7

Assuming perfect perfect capital mobility, the BP schedule is
 
  a. vertical.
  b. horizontal.
  c. upward sloping.
  d. downward sloping.
  e. flat.

Question 8

Capitalists like Henry Ford welcomed the Fair Labor Standards Act of 1938 . It relieved them of the responsibilities associated with contracting wages, hours and working conditions.
 
  Indicate whether the statement is true or false

Question 9

During the antebellum period, rapid economic growth was accompanied by significant changes in public economics and policy-making.
 
  Indicate whether the statement is true or false

Question 10

Entrepreneurship results in an equal distribution of wealth and income.
 
  Indicate whether the statement is true or false