Question 1

During the first three years of a recovery from a recession,productivity

Accepted Answer

A) usually rises relatively rapidly. 
B) falls slowly. 
C) is quite puzzling since it is usually unpredictable with respect to the directional change. 
D) usually remains constant. 
A) usually rises relatively rapidly. 
B) falls slowly. 
C) is quite puzzling since it is usually unpredictable with respect to the directional change. 
D) usually remains constant.

Question 2

According to supply-siders

Accepted Answer

A) there exists a temporary tradeoff between higher inflation and higher output growth. 
B) there exists a permanent tradeoff between higher inflation and higher output growth. 
C) there exists no tradeoff between higher inflation and higher output growth. 
D) there exists a temporary tradeoff between higher inflation and higher output growth during periods of low inflation only. 
A) there exists a temporary tradeoff between higher inflation and higher output growth. 
B) there exists a permanent tradeoff between higher inflation and higher output growth. 
C) there exists no tradeoff between higher inflation and higher output growth. 
D) there exists a temporary tradeoff between higher inflation and higher output growth during periods of low inflation only.

Question 3

Assume a nominal interest rate of 8 percent,an inflation rate of 3 percent,and a marginal tax rate of 25 percent.Calculate the after-tax nominal return and after-tax real return.According to supply-side economics,which of these matter for savings and investment decisions.

Accepted Answer

After-tax nominal return= [8 percent * (

Question 4

Which of the following factors are important in the determination of growth rates of output in the intermediate run?

Accepted Answer

A) Variations in the rates of capital formation. 
B) Changes in population growth. 
C) Changes in money growth. 
D) All of the above. 
E) None of the above. 
A) Variations in the rates of capital formation. 
B) Changes in population growth. 
C) Changes in money growth. 
D) All of the above. 
E) None of the above.

Question 5

Some people have referred to the time period between 1992 and 2002 as a "New Economy".Looking at the growth data in Table 19-1,why do you think people mean when they use the term "New Economy".Does the data from this period stand out in any way from previous periods.

Accepted Answer

People use the term "New Economy" to ref

Question 6

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 grown over the past two decades. 
B) has displayed a great deal of stability. 
C) is always highly variable from year-to-year and decade-to-decade. 
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 grown over the past two decades. 
B) has displayed a great deal of stability. 
C) is always highly variable from year-to-year and decade-to-decade. 
D) the rate of growth in output and labor productivity was slower during the 1990s. 
E) none of the above.

Question 7

Evidence in favor the Keynesian model would be that:

Accepted Answer

A) investment is not sensitive to changes in tax rates. 
B) labor supply is inelastic. 
C) the aggregate price level is positively correlated with income. 
D) all of the above. 
E) none of the above. 
A) investment is not sensitive to changes in tax rates. 
B) labor supply is inelastic. 
C) the aggregate price level is positively correlated with income. 
D) all of the above. 
E) none of the above.

Question 8

Regarding the output growth slowdown during the 1970s and 1980s,it is true that

Accepted Answer

A) the slowdown took place in the U.S.but not other developing countries. 
B) the primary determinant of the slowdown was lower labor productivity growth. 
C) increases in capital formation did not offset some of the slowdown in labor productivity growth. 
D) both b and C 
A) the slowdown took place in the U.S.but not other developing countries. 
B) the primary determinant of the slowdown was lower labor productivity growth. 
C) increases in capital formation did not offset some of the slowdown in labor productivity growth. 
D) both b and C

Question 9

"Reagonomics" was consistent with supply-side economics except for the fact that it

Accepted Answer

A) pushed for lower money growth. 
B) called for higher total government spending. 
C) pushed for tax cuts. 
D) pushed for reductions in nonmilitary government spending. 
A) pushed for lower money growth. 
B) called for higher total government spending. 
C) pushed for tax cuts. 
D) pushed for reductions in nonmilitary government spending.

Question 10

According to the supply-side economists,a cut in the marginal income tax rate would cause

Accepted Answer

A) labor supply to rise,output to rise,and the price level to fall. 
B) labor supply to rise,the price level to rise,and output to fall. 
C) labor supply to fall,the price level to rise,with output unchanged. 
D) labor supply to rise,the price level to fall,with output unchanged. 
A) labor supply to rise,output to rise,and the price level to fall. 
B) labor supply to rise,the price level to rise,and output to fall. 
C) labor supply to fall,the price level to rise,with output unchanged. 
D) labor supply to rise,the price level to fall,with output unchanged.

Question 11

Graphically show and explain the Laffer curve.

Accepted Answer

The Laffer curve shows the relationship

Question 12

The redirection of macroeconomic policy that took place during the Reagan and both Bush administrations was inspired by

Accepted Answer

A) supply-side economics. 
B) real business cycle theory. 
C) new classical economics. 
D) new Keynesian directions. 
A) supply-side economics. 
B) real business cycle theory. 
C) new classical economics. 
D) new Keynesian directions.

Question 13

Which of the following policies followed by the Clinton administration were not Keynesian policies?

Accepted Answer

A) Reducing the budget deficit during a strong expansion. 
B) Concentrating tax increases on upper income households. 
C) Attempting to increase government spending in 1992 when the U.S.economy was below its natural rate of output. 
D) Adjusting capital gains taxes for inflation in order to encourage savings. 
A) Reducing the budget deficit during a strong expansion. 
B) Concentrating tax increases on upper income households. 
C) Attempting to increase government spending in 1992 when the U.S.economy was below its natural rate of output. 
D) Adjusting capital gains taxes for inflation in order to encourage savings.

Question 14

It has been hypothesized that the productivity slowdown could have been caused by all of the following except

Accepted Answer

A) lower worldwide money growth. 
B) lower technology growth. 
C) higher oil prices. 
D) increased government regulation. 
A) lower worldwide money growth. 
B) lower technology growth. 
C) higher oil prices. 
D) increased government regulation.

During the first three years of a recovery from a recession,productivity

According to supply-siders

Assume a nominal interest rate of 8 percent,an inflation rate of 3 percent,and a marginal tax rate of 25 percent.Calculate the after-tax nominal return and after-tax real return.According to supply-side economics,which of these matter for savings and investment decisions.

Which of the following factors are important in the determination of growth rates of output in the intermediate run?

Some people have referred to the time period between 1992 and 2002 as a "New Economy".Looking at the growth data in Table 19-1,why do you think people mean when they use the term "New Economy".Does the data from this period stand out in any way from previous periods.

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

Evidence in favor the Keynesian model would be that:

Regarding the output growth slowdown during the 1970s and 1980s,it is true that

"Reagonomics" was consistent with supply-side economics except for the fact that it

According to the supply-side economists,a cut in the marginal income tax rate would cause

Graphically show and explain the Laffer curve.

The redirection of macroeconomic policy that took place during the Reagan and both Bush administrations was inspired by

Which of the following policies followed by the Clinton administration were not Keynesian policies?

It has been hypothesized that the productivity slowdown could have been caused by all of the following except

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

During the first three years of a recovery from a recession,productivity

According to supply-siders

Assume a nominal interest rate of 8 percent,an inflation rate of 3 percent,and a marginal tax rate of 25 percent.Calculate the after-tax nominal return and after-tax real return.According to supply-side economics,which of these matter for savings and investment decisions.

Which of the following factors are important in the determination of growth rates of output in the intermediate run?

Some people have referred to the time period between 1992 and 2002 as a "New Economy".Looking at the growth data in Table 19-1,why do you think people mean when they use the term "New Economy".Does the data from this period stand out in any way from previous periods.

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

Evidence in favor the Keynesian model would be that:

Regarding the output growth slowdown during the 1970s and 1980s,it is true that

"Reagonomics" was consistent with supply-side economics except for the fact that it

According to the supply-side economists,a cut in the marginal income tax rate would cause

Graphically show and explain the Laffer curve.

The redirection of macroeconomic policy that took place during the Reagan and both Bush administrations was inspired by

Which of the following policies followed by the Clinton administration were not Keynesian policies?

It has been hypothesized that the productivity slowdown could have been caused by all of the following except

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