Question 1

The supply-side economists expect that a cut in the marginal income tax rate,with lost revenues made up by a cut in government spending,would

Accepted Answer

A) increase output. 
B) decrease output. 
C) leave output unchanged. 
D) affect output but the direction of the effect is uncertain. 
A) increase output. 
B) decrease output. 
C) leave output unchanged. 
D) affect output but the direction of the effect is uncertain.

Question 2

Which of the following statements is (are)correct?

Accepted Answer

A) A central element in the supply-side position is that,for intermediate-run periods,growth in output is determined by demand and not supply 
B) Government policy plays a limited role in causing recessions,so it should play no role in ending them. 
C) Many supply-side economists agree that demand plays a role in the short-run determination of income 
D) none of the above 
A) A central element in the supply-side position is that,for intermediate-run periods,growth in output is determined by demand and not supply 
B) Government policy plays a limited role in causing recessions,so it should play no role in ending them. 
C) Many supply-side economists agree that demand plays a role in the short-run determination of income 
D) none of the above

Question 3

Which of the following statements is (are)correct? According to United States data,

Accepted Answer

A) the rate of growth in output and labor productivity has slowed over the past two decades. 
B) growth in the labor force has steadily increased since 1960. 
C) the growth rates of capital has slowly increased since the 1960s. 
D) the rate of growth in output and labor productivity was slower during the 1990s. 
E) none of the above. 
A) the rate of growth in output and labor productivity has slowed over the past two decades. 
B) growth in the labor force has steadily increased since 1960. 
C) the growth rates of capital has slowly increased since the 1960s. 
D) the rate of growth in output and labor productivity was slower during the 1990s. 
E) none of the above.

Question 4

An increase in the effective corporate tax rate due to increased inflation results in

Accepted Answer

A) a upward shift of the investment schedule. 
B) a downward shift of the investment schedule. 
C) no shift of the investment schedule. 
D) a rightward shift of the saving schedule. 
A) a upward shift of the investment schedule. 
B) a downward shift of the investment schedule. 
C) no shift of the investment schedule. 
D) a rightward shift of the saving schedule.

Question 5

If the nominal rate of interest on a bond was 7 percent,the inflation rate was 6 percent and an individual was in a 50-percent tax bracket,the after-tax real return on the bond would be equal to

Accepted Answer

A) 0 percent. 
B) .5 percent. 
C) 6 percent. 
D) 7 percent. 
E) none of the above. 
A) 0 percent. 
B) .5 percent. 
C) 6 percent. 
D) 7 percent. 
E) none of the above.

Question 6

The supply-siders argue that investment is

Accepted Answer

A) primarily a function of current income. 
B) highly responsive to changes in after-tax real interest rates. 
C) primarily a function of expectations. 
D) both a and B 
A) primarily a function of current income. 
B) highly responsive to changes in after-tax real interest rates. 
C) primarily a function of expectations. 
D) both a and B

Question 7

Would you classify the U.S.income tax system in the 1970s as progressive,regressive,or proportional? Has it gotten more or less progressive since then?

Accepted Answer

The U.S.income tax system in the 1970s w

Question 8

A piece of evidence in favor the Keynesian model would be that

Accepted Answer

A) investment is very sensitive to changes in tax rates. 
B) changes in aggregate income cause changes in investment,but not vice versa. 
C) the aggregate price level is negatively correlated with income. 
D) all of the above. 
A) investment is very sensitive to changes in tax rates. 
B) changes in aggregate income cause changes in investment,but not vice versa. 
C) the aggregate price level is negatively correlated with income. 
D) all of the above.

Question 9

The largest component of output growth in the U.S.is

Accepted Answer

A) labor productivity growth. 
B) capital growth 
C) labor growth. 
D) knowledge growth. 
E) None of the above. 
A) labor productivity growth. 
B) capital growth 
C) labor growth. 
D) knowledge growth. 
E) None of the above.

Question 10

During the Clinton administration,

Accepted Answer

A) government savings rose significantly. 
B) total savings savings rose significantly. 
C) private savings rose because an increase in the tax rates on upper-income Americans and more government regulation 
D) both b and C 
A) government savings rose significantly. 
B) total savings savings rose significantly. 
C) private savings rose because an increase in the tax rates on upper-income Americans and more government regulation 
D) both b and C

Question 11

Relative to the Keynesians,the supply-side economists

Accepted Answer

A) place more emphasis on the importance on the level of investment than on the level of income. 
B) place more emphasis on the after-tax rate of return as a determinant of investment. 
C) are more concerned with government budget deficits. 
D) All of the above 
A) place more emphasis on the importance on the level of investment than on the level of income. 
B) place more emphasis on the after-tax rate of return as a determinant of investment. 
C) are more concerned with government budget deficits. 
D) All of the above

Question 12

Public policies designed to increase labor productivity do not include

Accepted Answer

A) subsidies for higher education. 
B) tax breaks for job retraining. 
C) tax breaks on corporate dividends. 
D) public education. 
A) subsidies for higher education. 
B) tax breaks for job retraining. 
C) tax breaks on corporate dividends. 
D) public education.

Question 13

In 1994,the Republicans' "Contract with America" encompassed economic provisions that drew upon the ideas of

Accepted Answer

A) Keynesian economists. 
B) monetarists. 
C) new classical economists. 
D) supply-side economists. 
A) Keynesian economists. 
B) monetarists. 
C) new classical economists. 
D) supply-side economists.

Question 14

According to supply-siders,an switch from consumption to savings by households will

Accepted Answer

A) lead to a permanent increase in output-per-worker. 
B) lead to a temporary increase in output-per-worker. 
C) lead to a decline in output-per-worker. 
D) not change output-per-worker. 
A) lead to a permanent increase in output-per-worker. 
B) lead to a temporary increase in output-per-worker. 
C) lead to a decline in output-per-worker. 
D) not change output-per-worker.

Question 15

In the debate between equity and efficiency,_____ tend to favor efficiency,while _____ tend to favor equity.

Accepted Answer

A) Keynesians; classicals 
B) monetarists; supply-siders 
C) supply-siders; Keynesians 
D) classicals; supply-siders. 
A) Keynesians; classicals 
B) monetarists; supply-siders 
C) supply-siders; Keynesians 
D) classicals; supply-siders.

Question 16

Which of the following statements is correct?

Accepted Answer

A) According to the supply-side view,the tax cuts during Bush's first term in office were supposed to increase aggregate supply and move the economy towards higher output but a higher price level. 
B) President Bush pushed for significant cuts in government spending during his first term in office in order to assure that demand was not overly stimulated and to hold the budget deficit as low as possible 
C) The Bush tax cuts were aimed at maximizing the increase in aggregate demand in order to stabilize output. 
D) None of the above 
A) According to the supply-side view,the tax cuts during Bush's first term in office were supposed to increase aggregate supply and move the economy towards higher output but a higher price level. 
B) President Bush pushed for significant cuts in government spending during his first term in office in order to assure that demand was not overly stimulated and to hold the budget deficit as low as possible 
C) The Bush tax cuts were aimed at maximizing the increase in aggregate demand in order to stabilize output. 
D) None of the above

Question 17

The U.S.economy during the 2001-2004 period was been characterized by all of the following except

Accepted Answer

A) expansionary fiscal policy. 
B) expansionary monetary policy. 
C) a jobless recovery. 
D) moderate economic growth. 
E) none of the above 
A) expansionary fiscal policy. 
B) expansionary monetary policy. 
C) a jobless recovery. 
D) moderate economic growth. 
E) none of the above

Question 18

Explain the corporate dividend tax cut enacted by the Bush administration in 2004.What was the rationale behind this tax cut? Was its primary aim to stimulate income in the short run? Why or why not?

Accepted Answer

The corporate dividend tax cut enacted i

Question 19

The worldwide slowdown in labor productivity began in the early

Accepted Answer

A) 1960s. 
B) 1970s. 
C) 1980s. 
D) 1990s. 
A) 1960s. 
B) 1970s. 
C) 1980s. 
D) 1990s.

Question 20

According to supply-side economists,the incentive to save during the Clinton Administration fell due to a combination of

Accepted Answer

A) an increase in net export and a budget surplus. 
B) an increase in the tax rates on upper-income Americans and more government regulation. 
C) higher inflation and higher tax rates on lower-income Americans. 
D) None of the above 
A) an increase in net export and a budget surplus. 
B) an increase in the tax rates on upper-income Americans and more government regulation. 
C) higher inflation and higher tax rates on lower-income Americans. 
D) None of the above

The supply-side economists expect that a cut in the marginal income tax rate,with lost revenues made up by a cut in government spending,would

Which of the following statements is (are)correct?

Which of the following statements is (are)correct? According to United States data,

An increase in the effective corporate tax rate due to increased inflation results in

If the nominal rate of interest on a bond was 7 percent,the inflation rate was 6 percent and an individual was in a 50-percent tax bracket,the after-tax real return on the bond would be equal to

The supply-siders argue that investment is

Would you classify the U.S.income tax system in the 1970s as progressive,regressive,or proportional? Has it gotten more or less progressive since then?

A piece of evidence in favor the Keynesian model would be that

The largest component of output growth in the U.S.is

During the Clinton administration,

Relative to the Keynesians,the supply-side economists

Public policies designed to increase labor productivity do not include

In 1994,the Republicans' "Contract with America" encompassed economic provisions that drew upon the ideas of

According to supply-siders,an switch from consumption to savings by households will

In the debate between equity and efficiency,_ tend to favor efficiency,while _ tend to favor equity.

Which of the following statements is correct?

The U.S.economy during the 2001-2004 period was been characterized by all of the following except

Explain the corporate dividend tax cut enacted by the Bush administration in 2004.What was the rationale behind this tax cut? Was its primary aim to stimulate income in the short run? Why or why not?

The worldwide slowdown in labor productivity began in the early

According to supply-side economists,the incentive to save during the Clinton Administration fell due to a combination of

Introduction

Measurement of Macroeconomic Variables

Classical Macroeconomics I: Output and Employment

Classical Macroeconomics II: Money,prices,and Interest

Keynesian System I: the Role of Aggregate Demand

Keynesian System II: Money,interest,and Income

Keynesian System III: Policy Effects in the Is-Lm Model

Keynesian System Iv: Aggregate Supply and Demand

The Monetarist Counterrevolution

Output,inflation,and Unemployment: Alternative Views

New Classical Economics

Real Business Cycles and New Keynesian Economics

Macroeconomic Models:a Summary

Exchange Rates and the International Monetary System

Monetary and Fiscal Policy in the Open Economy

Money,the Banking System,and Interest Rates

Optimal Monetary Policy

Fiscal Policy

Long-Run Economic Growth: Origins of the Wealth of Nations

Filters

Exam 19: Policies for Intermediate-Run Growth

The supply-side economists expect that a cut in the marginal income tax rate,with lost revenues made up by a cut in government spending,would

Which of the following statements is (are)correct?

Which of the following statements is (are)correct? According to United States data,

An increase in the effective corporate tax rate due to increased inflation results in

If the nominal rate of interest on a bond was 7 percent,the inflation rate was 6 percent and an individual was in a 50-percent tax bracket,the after-tax real return on the bond would be equal to

The supply-siders argue that investment is

Would you classify the U.S.income tax system in the 1970s as progressive,regressive,or proportional? Has it gotten more or less progressive since then?

A piece of evidence in favor the Keynesian model would be that

The largest component of output growth in the U.S.is

During the Clinton administration,

Relative to the Keynesians,the supply-side economists

Public policies designed to increase labor productivity do not include

In 1994,the Republicans' "Contract with America" encompassed economic provisions that drew upon the ideas of

According to supply-siders,an switch from consumption to savings by households will

In the debate between equity and efficiency,_____ tend to favor efficiency,while _____ tend to favor equity.

Which of the following statements is correct?

The U.S.economy during the 2001-2004 period was been characterized by all of the following except

Explain the corporate dividend tax cut enacted by the Bush administration in 2004.What was the rationale behind this tax cut? Was its primary aim to stimulate income in the short run? Why or why not?

The worldwide slowdown in labor productivity began in the early

According to supply-side economists,the incentive to save during the Clinton Administration fell due to a combination of

Introduction

Measurement of Macroeconomic Variables

Classical Macroeconomics I: Output and Employment

Classical Macroeconomics II: Money,prices,and Interest

Keynesian System I: the Role of Aggregate Demand

Keynesian System II: Money,interest,and Income

Keynesian System III: Policy Effects in the Is-Lm Model

Keynesian System Iv: Aggregate Supply and Demand

The Monetarist Counterrevolution

Output,inflation,and Unemployment: Alternative Views

New Classical Economics

Real Business Cycles and New Keynesian Economics

Macroeconomic Models:a Summary

Exchange Rates and the International Monetary System

Monetary and Fiscal Policy in the Open Economy

Money,the Banking System,and Interest Rates

Optimal Monetary Policy

Fiscal Policy

Long-Run Economic Growth: Origins of the Wealth of Nations

Filters

In the debate between equity and efficiency,_ tend to favor efficiency,while _ tend to favor equity.