1) On an aggregate demand and aggregate supply graph, the stagflation of the 1970s can be represented as a<\/p>\n
a. leftward shift of the aggregate supply curve<\/p>\n
b. rightward shift of the aggregate supply curve<\/p>\n
c. rise in the price level that caused an excess demand for output<\/p>\n
d. rightward shift of the aggregate demand curve<\/p>\n
e. decrease in the price level that caused an excess supply of output<\/p>\n
2) Economic fluctuations (or business cycles)<\/p>\n
a. Are changes in the number of business started<\/p>\n
b. are fluctuations in the Dow Jones industrial average relative to a long-term growth trend<\/p>\n
c. look at the role of business in the hiring resources<\/p>\n
d. are fluctuations in the level of economic activity, relative to a long-term growth trend<\/p>\n
e. are changes in govt spending that occur over a period of years<\/p>\n
3) According to Keynes, “animal spirits”<\/p>\n
a. make investment spending unstable<\/p>\n
b. make consumption spending unstable<\/p>\n
c. make government spending inherently stable<\/p>\n
d. guide the economy back to equilibrium after a disruption<\/p>\n
e. create the federal government budget deficits that have become so common today<\/p>\n
4) The Reagan administration’s 1981 investment tax changes were designed to<\/p>\n
a. stimulate aggregate demand and thereby reduce unemployment<\/p>\n
b. stimulate aggregate demand and thereby increase economic growth<\/p>\n
c. stimulate aggregate supply and thereby increase economic growth<\/p>\n
d. decrease aggregate demand in order to reduce inflation<\/p>\n
e. increase tax revenues to reduce the federal budget deficit<\/p>\n
5) A recession is a period during which<\/p>\n
a. employment, production, and income decrease<\/p>\n
b. the price level is increasing<\/p>\n
c. inventories are falling dramatically<\/p>\n
d. the unemployment rate is falling while the price level is rising<\/p>\n
e. the government attempts to reduce a budget deficit by reducing taxes and increasing government spending<\/p>\n
6) Double counting in the value added approach to GDP refers to<\/p>\n
a. corporate income being taxed twice<\/p>\n
b. the amount of income taxes paid to states that is taxable by the federal government<\/p>\n
c. calculating GDP twice using the income and expenditures methods<\/p>\n
d. adding the value of exports to GDP and subtracting the value of imports<\/p>\n
e. counting the total value of a final output in addition to the value of the inputs used to make it<\/p>\n
7) The GDP price index<\/p>\n
a. involves all final goods and services produced in the economy<\/p>\n
b. is derived from looking at quantities of goods sold rather than at prices<\/p>\n
c. is derived using the prices of only imported and exported goods and services<\/p>\n
d. is derived using the implicit prices of goods and services produced by the government<\/p>\n
e. involves all goods and services sold in the economy<\/p>\n
8) Value added is<\/p>\n
a the sum of all income earned by resource suppliers<\/p>\n
b. actual investment minus planned investment<\/p>\n
c. any payment of income that adds to the domestic spending stream<\/p>\n
d. the value of a product minus the cost of materials<\/p>\n
e. the increase in the value of a financial asset such as a stock or bond<\/p>\n
9) Nominal GDP is measured in<\/p>\n
A. current-year prices<\/p>\n
B. base-year prices<\/p>\n
C. real dollars<\/p>\n
D. quantity of goods produced<\/p>\n
E. hours of employment<\/p>\n
10) Which of the following is an injection into the spending stream?<\/p>\n
a. planned investment<\/p>\n
b. imports<\/p>\n
c. indirect business taxes<\/p>\n
d. disposable income<\/p>\n
e. interest on savings<\/p>\n
11) Seasonal unemployment results from<\/p>\n
A. unrealistic expectations about the availability of employment<\/p>\n
B. being in the wrong geographical location<\/p>\n
C. taking the time to find the best job<\/p>\n
D. decreases in demand for labor at certain times of the year<\/p>\n
E. periodic increases in business activity<\/p>\n
12) a recent college graduate who is still looking for their first job, would be considered as<\/p>\n
a. a discouraged worker<\/p>\n
b. underemployed<\/p>\n
c. overemployed<\/p>\n
d. unemployed<\/p>\n
e. not in the labor force<\/p>\n
13) In the United States<\/p>\n
a. the average inflation rate was higher before 1950 than after<\/p>\n
b. the average inflation rate was higher after 1950 than before<\/p>\n
c. inflation caused no serious problems before World War II<\/p>\n
d. inflation caused no serious problems after World War II<\/p>\n
e. the implicit price deflator was used to measure inflation before World War II, and the consumer price index has been used since then.<\/p>\n
14) Since World War II, the U.S. economy has experienced<\/p>\n
a. a decrease in the civilian labor force<\/p>\n
b. a decrease in the number of unemployed persons<\/p>\n
c. a decrease in the number of employed persons<\/p>\n
d. an increase in the labor force<\/p>\n
e. a declining unemployment rate as a general trend<\/p>\n
15) When the economy is at full employment, what types of unemployment may exist?<\/p>\n
a. None<\/p>\n
b. structural and frictional<\/p>\n
c. seasonal and cyclical<\/p>\n
d. frictional, cyclical, and structural<\/p>\n
e. cyclical<\/p>\n
16) Over the last 100 years, the U.S. labor productivity growth rate experienced its largest declines<\/p>\n
a. during the Great Depression<\/p>\n
b. in the 1940s<\/p>\n
c. during the 1950s<\/p>\n
d. during the 1980s<\/p>\n
17) The term industrial policy refers to<\/p>\n
a. the policy industries develop to promote growth<\/p>\n
b. industry policy related to marketing strategies<\/p>\n
c. the illegal activity that firms sometimes engage in to reduce competition<\/p>\n
d. government policy arrived at enhancing our competitiveness with foreign industry<\/p>\n
18) which of the following would not be considered a developed country?<\/p>\n
a. Pakistan<\/p>\n
b. The US<\/p>\n
c. Japan<\/p>\n
d. Australia<\/p>\n
e. Belgium<\/p>\n
19) Which of the following is the best indicator of the standard of living?<\/p>\n
a. Nominal GDP<\/p>\n
b. Real GDP<\/p>\n
c. Real GDP per capita<\/p>\n
d. Productivity<\/p>\n
e. Productivity per unit of labor<\/p>\n
20) Over the last 100 years, U.S. labor productivity grew the fastest<\/p>\n
a. During the depression<\/p>\n
b. In the 1940s<\/p>\n
c. In the first half of the period<\/p>\n
d. During the 1960s<\/p>\n
e. During the 1980s an increase in the labor force participation rate of women<\/p>\n","protected":false},"excerpt":{"rendered":"
1) On an aggregate demand and aggregate supply graph, the stagflation of the 1970s can be represented as a a. leftward shift of the aggregate supply curve b. rightward shift of the aggregate supply curve c. rise in the price Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-174524","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/174524","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=174524"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/174524\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=174524"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=174524"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=174524"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}