An increase in the expected price level will
a. increase labor supply, money wages, decrease the price level and income.
b. decrease labor supply, increase money wages, decrease the price level and income.
c. decrease labor supply, decrease money wages, and decrease the price level and income.
d. increase labor supply, decrease money wages, decrease the price level, and increase income.
Question 2According to the quantity theory of money, a shortage of money should result in deflation (falling prices) or negative growth (decreasing quantities of output).
Indicate whether the statement is true or false
Question 3The Employment Act of 1946, which sets up the Council of Economic Advisers,
(a) was the final legislation of the New Deal.
(b) grew out of the War Manpower Board's experience.
(c) grew out of financial negotiations with Britain.
(d) was the product of New Deal experience with fiscal policy.
Question 4In all areas but property, the measurable costs of the Civil War (18611865) were highest in the North.
Indicate whether the statement is true or false
Question 5During the 2000s, the Federal government's deficit rose because of
a. large tax cut in 2001 and 2004..
b. large increases in government spending.
c. increases in both the cyclical and structural deficits.
d. a recession in 2001.
e. all of the above.
Question 6According to Keynes' fixed money wage theory, when the price level is higher than expected the real wage is ____ than expected and unemployment is ______ than expected.
a. lower; lower
b. higher, higher
c. lower; higher
d. higher; lower
Question 7Which of the following best describes typical employer attitudes toward organized labor (unions) during the 19th century?
(a) Positiveunions could promote cooperation with management to achieve
more efficient operations
(b) Negativeunion-promoted labor gains seized profits and encouraged
inefficient behavior
(c) Indifferentunions had little impact on business profitability
(d) Mixedabout half of employers favored unions and half opposed them
Question 8What produced the European Payments Union?
(a) The Schumann Plan
(b) The Monet Plan
(c) The Spaak Plan
(d) The Marshall Plan
Question 9The money value of all trading activity (Q) at market prices (P) is called Gross Domestic Product for a given year.
Indicate whether the statement is true or false
Question 10Which of the following schools of thought are policy interventionists favoring activist aggregate demand management to stabilize output and employment?
a. Keynesians
b. Monetarism
c. The new classical economics
d. The classical economics
e. None of the above
Question 11Assume that the total deficit is 100 billion and the economy is above potential output.
Now the level of economic activity falls back to its potential level output, leading to an decrease in tax revenues increase by 50 billion an increase in transfer payments fell by 10 billion. Then, what is the structural deficit? a. 100 billion
b. 110 billion
c. 150 billion
d. 160 billion
e. can't tell based on information given.
Quick Reply
