After the inflation of the Johnson-Nixon-Ford years (19631976), the Carter Administration, while still inflationary, managed to slow down the rate of advancing prices.
Indicate whether the statement is true or false
Question 2The Federal Constitution, like the laws under English rule, permitted the U.S. government to
(a) impose taxes to pay for government services and national defense.
(b) regulate commerce with other countries.
(c) create money and regulate its value.
(d) do all of the above.
Question 3If the population of Country A grows at 3 a year but technology growth is zero, then the neoclassical model predicts that in the steady state
a. the capital-to-labor ratio will increase at 3 a year.
b. per capita output to grow at 3 a year.
c. per capital output to grow at less than 3 a year.
d. the capital-to-labor ratio to decrease at 3 a year.
e. a and b.
Question 4Historically barriers to development in the U.S., such as the dry deserts of some of the country's western states, have been solved by
(a) only government action.
(b) only private action.
(c) a blend of government and private actions.
(d) foreign expertise.
Question 5The Smoot-Hawley Tariff Act of 1930, like any tariff act, increased the price of the taxed imported goods as well as the domestic price of U.S. goods and services produced in the industries favored by the tariff.
Consequently, any tariff negatively impacts U.S. consumers by forcing them to pay higher prices. Indicate whether the statement is true or false
Question 6In the monetarist view, if the money supply has been rising too quickly for years, the resulting inflation can be brought under control by slowing money growth. This will
a. quickly reduce inflation with no side effects.
b. quickly reduce inflation with higher unemployment.
c. increase unemployment depending upon how quickly the public changes their expected price level.
d. slowly reduce inflation with higher unemployment.
e. both c and d.
Question 7Assuming imperfect perfect capital mobility, the BP schedule is
a. vertical.
b. horizontal.
c. upward sloping.
d. downward sloping.
e. flat.
Question 8The hope of Reaganomicsthat ending inflation will stimulate economic growthis supported by the experience of 194549.
Indicate whether the statement is true or false
Question 9During the period of rapid industrialization in the U.S. after the Civil War,
(a) real farm incomes fell drastically.
(b) real incomes in the agricultural sector increased at a faster pace than real incomes
in manufacturing.
(c) real incomes in the agricultural sector increased at relatively the same rate as real incomes
in manufacturing.
(d) real incomes in the agricultural sector increased but at a slower pace than real incomes
in manufacturing.
Question 10A constant returns to scale production function means that if all inputs are halved then output will
a. double.
b. increase, but not double.
c. fall by half.
d. fall, but not by half.
e. none of the above.
Question 11During the Great Depression, the U.S. was not firmly tied to the world economy.
Indicate whether the statement is true or false
Question 12For each Phillips curve, there
a. is no relationship between the short run aggregate supply curve.
b. is many short run aggregate supply curves.
c. is a unique long run aggregate supply curve.
d. is a unique short run aggregate supply curve.
Question 13Under the U.S. Constitution, individual states
(a) have no power.
(b) control laws regulating state businesses.
(c) benefit from the ability to borrow from other countries to finance taxes due to the central government.
(d) regulate trade with foreign countries conducted in and by the state.
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