The new Keynesian theories of efficiency wages imply

The new Keynesian theories of efficiency wages imply
 
  a. nominal wage rigidity.
  b. real wage rigidity.
  c. changes in unemployment represent changes in the natural rate of unemployment.
  d. market clearing in the labor market in the long-run.
  e. None of the above

Question 2

Which of the following is (are) correct? In the classical system, the suppliers of bonds were the
 
  a. government which always sold bonds to finance a new project.
  b. firms which financed all investment expenditures by selling bonds.
  c. government which might sell bonds to finance spending in excess of tax revenues.
  d. Both b and c.

Question 3

During the antebellum period, the U.S. used more economic output and resources than were domestically available during expansions and less during contractions. International trade assisted during these cyclical times.
 
  Indicate whether the statement is true or false

Question 4

An increase in the marginal propensity to hold money
 
  a. results in an fall in the interest rate and a decline in income.
  b. raises the interest rate and lowers income.
  c. results in a fall in the interest rate and a rise in income.
  d. raises both the interest rate and income.

Question 5

The direction of colonial trade produced great trade deficits with England, especially in the New England Colonies. Consequently, growth and development were stifled in colonial America.
 
  Indicate whether the statement is true or false

Question 6

According to the partisan party model,
 
  a. the primary emphasis of the liberal party is on full employment and income distribution.
  b. the liberal party stresses price stability as their most important goal.
  c. employment stability is most important to the conservative party.
  d. only two parties exist.
  e. Both a and d.

Question 7

The command of World War II (194145)
 
  (a) was more structured than that of World War I (191418) (WWI).
  (b) experienced the same unconstitutionality problems experienced
  during WWI.
  (c) was distinct from WWI in most ways.
  (d) did not involve rationing of goods and services, given the high unemployment
  of the period.

Question 8

Operation on the basis of comparative advantages implies which of the following?
 
  (a) Countries allocate their resources across all sectors regardless of opportunity costs.
  (b) Countries will specialize even if they can produce everything.
  (c) Countries not efficient in any production should not trade.
  (d) none of the above.

Question 9

Regional specialization did not emerge in the colonies due to the small size of the cities and towns.
 
  Indicate whether the statement is true or false

Question 10

National output is a function of ________.
 
  A) capital and saving
  B) technology, employment and demand
  C) labor and depreciation
  D) labor, technology and capital

Question 11

Monopolist fears that central banks would unfairly compete with all other profit-maximizing banks contributed to the demise of the First and Second Banks of the U.S.
 
  Indicate whether the statement is true or false

Question 12

In the simple Keynesian model, if the tax function is given by T = 0.15Y and the consumption function is C = 50 + 0.7YD then a 10-unit increase in government spending would increase equilibrium income by
 
  a. 10 units.
  b. 11.2 units.
  c. 22.4 units.
  d. 30 units.
  e. none of the above