In a study of whether prices are sticky or not, Alan Blinder supervised interviews of corporate ...

In a study of whether prices are sticky or not, Alan Blinder supervised interviews of corporate executives on the frequency with which their firms change prices and found that
 
  a. 55 percent of firms changed prices only once a year or less.
  b. over 20 percent of the firms changed prices more than 12 times per year.
  c. 10 percent of companies changed prices 4 to 12 times per year.
  d. there is not a considerable departure from auction-market behavior.

Question 2

Which one of the following economic activities was NOT generally undertaken in New England in the colonial period?
 
  (a) Fishing
  (b) Farming
  (c) Tobacco production
  (d) Shipbuilding

Question 3

Keynesians believe in
 
  a. active management of structural deficits an minimal cyclical deficits.
  b. running structural budget deficits to stimulate output
  c. running large surpluses during expansions.
  d. active management of cyclical deficits and minimal structural deficits.
  e. both c and d.

Question 4

Productivity growth can be measured ________.
 
  A) by dividing output by Kt0.3 Lt0.7
  B) by adding the contributions from capital growth and labor growth
  C) by subtracting the contributions from capital growth and labor growth from the growth of output
  D) by dividing the growth of output by the contributions from capital growth and labor growth

Question 5

Which of the following was a source of the U.S. federal government's financial revenue for World War II (194145)?
 
  (a) Tariffs
  (b) Bond sales to other governments
  (c) Bond sales to the Federal Reserve System
  (d) Bond sales to the U.S. Congress

Question 6

As cities grew and markets developed, life, fire and death insurance companies emerged to manage risks and help groups of individuals during disasters.
 
  Indicate whether the statement is true or false

Question 7

If the government wanted to reduce interest rates without changing output, it should
 
  a. increase consumption and reduce the money supply.
  b. increase the money supply and raise government spending.
  c. increase the money supply and raise taxes.
  d. both b and c.

Question 8

According to the classical model shown above, an autonomous decline in investment shifts the investment schedule to the left. Furthermore, the equilibrium interest rate declines. Distance A describes an interest rate induced
 
  a. decline in saving, which is an equal increase in consumption.
  b. increase in investment.
  c. decrease in investment.
  d. decline in saving, which exceeds the increase in consumption.

Question 9

In the industrial period of U.S. history, the manufacturing goods consumed by U.S. households were subject to
 
  (a) high taxes.
  (b) Engel's Law.
  (c) income effects.
  (d) none of the above.

Question 10

The largest colony in 1770 in both population and claims on hinterlands was
 
  (a) Massachusetts
  (b) Pennsylvania
  (c) Virginia
  (d) New York

Question 11

High differentials in interest rates suggest that the financial markets of New England, the Middle Atlantic and the South were not integrated with those of New York City.
 
  Indicate whether the statement is true or false

Question 12

In the IS-LM model, an increase in government spending in the goods market has an impact on the money market because
 
  a. it increases the money supply.
  b. it increases income, which increases money demand.
  c. it decreases income, which decreases money demand.
  d. it increases interest rates, which decreases money demand.
  e. none of the above.

Question 13

According to the partisan theory,
 
  a. politicians are viewed as working only for their own welfare.
  b. there are two parties with flexible goals.
  c. moderates and liberals often switch political goals.
  d. macroeconomic policy is not a key focus of most politicians.
  e. none of the above.