Question 1

As a country devotes more of its resources to education,we can expect:

Accepted Answer

A) output to stay constant for all time. 
B) output to fall in the short run but rise in the long run. 
C) output to rise in the short run but fall in the long run. 
D) output to rise in the short and long run. 
E) higher rates of inflation. 
A) output to stay constant for all time. 
B) output to fall in the short run but rise in the long run. 
C) output to rise in the short run but fall in the long run. 
D) output to rise in the short and long run. 
E) higher rates of inflation. B

Question 2

Standards of living in the long run have been improved by:

Accepted Answer

A) investment in physical capital. 
B) investment in human capital. 
C) higher inflation. 
D) lower nominal interest rates. 
E) a and b 
A) investment in physical capital. 
B) investment in human capital. 
C) higher inflation. 
D) lower nominal interest rates. 
E) a and b E

Question 3

In the long run,the classical dichotomy holds,

Accepted Answer

A) money is not neutral. 
B) there is constant tension between inflation and unemployment. 
C) the inflation and unemployment rates are zero. 
D) steady-state growth is a constant 2 percent. 
E) there is no trade-off between inflation and unemployment. 
A) money is not neutral. 
B) there is constant tension between inflation and unemployment. 
C) the inflation and unemployment rates are zero. 
D) steady-state growth is a constant 2 percent. 
E) there is no trade-off between inflation and unemployment. E

Question 4

What problems is economics still trying to answer?

Accepted Answer

• Why do countries have different long-r

Question 5

The Asian and Argentinean crises have led China:

Accepted Answer

A) to rely on inflation taxes. 
B) to allow its currency to float. 
C) to decrease its domestic investment. 
D) to maintain strict capital controls. 
E) to keep interest rates close to zero. 
A) to rely on inflation taxes. 
B) to allow its currency to float. 
C) to decrease its domestic investment. 
D) to maintain strict capital controls. 
E) to keep interest rates close to zero.

Question 6

The policies used by a successful economy can be adopted by aspiring economies.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following has not contributed to higher standards of living in the long run?

Accepted Answer

A) productivity 
B) investment in human capital 
C) the stock of technology 
D) investment in physical capital 
E) none of the above 
A) productivity 
B) investment in human capital 
C) the stock of technology 
D) investment in physical capital 
E) none of the above

Question 8

Which of the following is not one of the questions left unanswered at the end of the text?

Accepted Answer

A) What are the best institutions in a wide range of settings? 
B) Why do countries have different investment rates,technologies,and total factor productivity levels? 
C) What is the relationship between money and output in the very long run? 
D) How can policymakers lock in the credibility gains in monetary policy and the low inflation that have been achieved? 
E) How do we measure potential output,and therefore short-run output,in practice? 
A) What are the best institutions in a wide range of settings? 
B) Why do countries have different investment rates,technologies,and total factor productivity levels? 
C) What is the relationship between money and output in the very long run? 
D) How can policymakers lock in the credibility gains in monetary policy and the low inflation that have been achieved? 
E) How do we measure potential output,and therefore short-run output,in practice?

Question 9

In the long run,the classical dichotomy holds;there is no trade-off between inflation and unemployment.

Accepted Answer

A) True 
 B)False

Question 10

Different rates of economic growth across countries reflect:

Accepted Answer

A) differences in savings rates. 
B) differences in initial endowments. 
C) the principle of transition dynamics. 
D) all of the above 
E) none of the above 
A) differences in savings rates. 
B) differences in initial endowments. 
C) the principle of transition dynamics. 
D) all of the above 
E) none of the above

Question 11

The credibility of the central bank

Accepted Answer

A) promotes long-run growth. 
B) is irrelevant for controlling inflation. 
C) is crucial for controlling inflation and stabilizing output. 
D) promotes sensible fiscal policy. 
E) implies low interest rates. 
A) promotes long-run growth. 
B) is irrelevant for controlling inflation. 
C) is crucial for controlling inflation and stabilizing output. 
D) promotes sensible fiscal policy. 
E) implies low interest rates.

Question 12

The Asian and Argentinean crises led China to maintain strict capital controls.

Accepted Answer

A) True 
 B)False

Question 13

If we cannot accurately measure potential GDP,

Accepted Answer

A) we might overestimate the severity of a recession. 
B) we may adopt the wrong fiscal or monetary policy. 
C) we will never know the true state of the economy. 
D) All of the above are correct. 
E) None of the above is correct. 
A) we might overestimate the severity of a recession. 
B) we may adopt the wrong fiscal or monetary policy. 
C) we will never know the true state of the economy. 
D) All of the above are correct. 
E) None of the above is correct.

Question 14

In the short run,

Accepted Answer

A) money is not neutral. 
B) there is no trade-off between inflation and unemployment. 
C) the inflation and unemployment rates are zero. 
D) steady-state growth is a constant 2 percent. 
E) there is constant tension between inflation and unemployment. 
A) money is not neutral. 
B) there is no trade-off between inflation and unemployment. 
C) the inflation and unemployment rates are zero. 
D) steady-state growth is a constant 2 percent. 
E) there is constant tension between inflation and unemployment.

Question 15

As a country devotes more of its resources to education,we can expect output to stay constant for all time.

Accepted Answer

A) True 
 B)False

Question 16

In the long run,the unemployment rate is determined primarily by institutional features of the labor market.

Accepted Answer

A) True 
 B)False

Question 17

In the short run,inflation has inertia.

Accepted Answer

A) True 
 B)False

Question 18

According to the principle of transition dynamics,we should expect China's economy:

Accepted Answer

A) to grow at a relatively high rate forever. 
B) to grow relatively slowly now but speed up over time. 
C) to grow relatively fast now but slow down over time. 
D) to catch up to the United States in the next 50 years or so. 
E) to reach its steady state by the year 2100. 
A) to grow at a relatively high rate forever. 
B) to grow relatively slowly now but speed up over time. 
C) to grow relatively fast now but slow down over time. 
D) to catch up to the United States in the next 50 years or so. 
E) to reach its steady state by the year 2100.

Question 19

In the short run,tight monetary policy can exacerbate inflation.

Accepted Answer

A) True 
 B)False

Question 20

In the short run,tight monetary policy can:

Accepted Answer

A) depreciate the domestic currency. 
B) adversely affect net exports. 
C) exacerbate inflation. 
D) promote net exports. 
E) a and b 
A) depreciate the domestic currency. 
B) adversely affect net exports. 
C) exacerbate inflation. 
D) promote net exports. 
E) a and b

As a country devotes more of its resources to education,we can expect:

Standards of living in the long run have been improved by:

In the long run,the classical dichotomy holds,

What problems is economics still trying to answer?

The Asian and Argentinean crises have led China:

The policies used by a successful economy can be adopted by aspiring economies.

Which of the following has not contributed to higher standards of living in the long run?

Which of the following is not one of the questions left unanswered at the end of the text?

In the long run,the classical dichotomy holds;there is no trade-off between inflation and unemployment.

Different rates of economic growth across countries reflect:

The credibility of the central bank

The Asian and Argentinean crises led China to maintain strict capital controls.

If we cannot accurately measure potential GDP,

In the short run,

As a country devotes more of its resources to education,we can expect output to stay constant for all time.

In the long run,the unemployment rate is determined primarily by institutional features of the labor market.

In the short run,inflation has inertia.

According to the principle of transition dynamics,we should expect China's economy:

In the short run,tight monetary policy can exacerbate inflation.

In the short run,tight monetary policy can:

Introduction to Macroeconomics

Measuring the Macroeconomy

An Overview of Long- Run Economic Growth

A Model of Production

The Solow Growth Model

Growth and Ideas

The Labor Market,wages,and Unemployment

Inflation

An Introduction to the Short Run

The Great Recession: a First Look

The Is Curve

Monetary Policy and the Phillips Curve

Stabilization Policy and the Asad Framework

The Great Recession and the Short-Run Model

Consumption

Investment

The Government and the Macroeconomy

International Trade

Exchange Rates and International Finance

Filters

Exam 20: Parting Thoughts

As a country devotes more of its resources to education,we can expect:

Standards of living in the long run have been improved by:

In the long run,the classical dichotomy holds,

What problems is economics still trying to answer?

The Asian and Argentinean crises have led China:

The policies used by a successful economy can be adopted by aspiring economies.

Which of the following has not contributed to higher standards of living in the long run?

Which of the following is not one of the questions left unanswered at the end of the text?

In the long run,the classical dichotomy holds;there is no trade-off between inflation and unemployment.

Different rates of economic growth across countries reflect:

The credibility of the central bank

The Asian and Argentinean crises led China to maintain strict capital controls.

If we cannot accurately measure potential GDP,

In the short run,

As a country devotes more of its resources to education,we can expect output to stay constant for all time.

In the long run,the unemployment rate is determined primarily by institutional features of the labor market.

In the short run,inflation has inertia.

According to the principle of transition dynamics,we should expect China's economy:

In the short run,tight monetary policy can exacerbate inflation.

In the short run,tight monetary policy can:

Introduction to Macroeconomics

Measuring the Macroeconomy

An Overview of Long- Run Economic Growth

A Model of Production

The Solow Growth Model

Growth and Ideas

The Labor Market,wages,and Unemployment

Inflation

An Introduction to the Short Run

The Great Recession: a First Look

The Is Curve

Monetary Policy and the Phillips Curve

Stabilization Policy and the Asad Framework

The Great Recession and the Short-Run Model

Consumption

Investment

The Government and the Macroeconomy

International Trade

Exchange Rates and International Finance

Filters