If Jorge is temporarily absent from his regular job because of an industrial dispute, the
Bureau of Labor Statistics will classify him as unemployed.
a. True
b. False
Those economists who view the AS curve as being vertical see more government tools
capable of raising Real GDP than do the economists who view the AS curve as being
upward-sloping.
a. True
b. False
The U.S. dollar currently serves as the “unit of account” of major global products.
a. True
b. False
Exhibit 37-1
where the higher the number, the better the position for the person to whom the number
is connected.Jaden and Karen are currently in box 4, each receiving 10.they would like
to move to box1, where each receives 12.Without someone to ________________ their
agreement, moving from box 4 is ______________________.
a. enforce; likely
b. enforce; unlikely
c. break; unlikely
d. break; likely
e. There is not enough information to answer the question.
Higher real interest rates in the United States (relative to foreign real interest rates) will
lead to a(n) _____________________of the dollar, a ____________ shift of the U.S.
AD curve and a _________________ shift of the U.S. SRAS curve.
a. appreciation; rightward; leftward
b. appreciation; leftward; rightward
c. depreciation ; rightward; leftward
d. depreciation; leftward; rightward
e. appreciation; rightward; rightward
Collateralized debt obligations are
a. like mortgage-backed securities except that the slices are equal.
b. like mortgage-backed securities except that the slices are unequal.
c. an asset for persons who buy them.
d. b and c
e. a and c
Can a one-time increase in the supply of money cause one-shot inflation?
a. Yes, because it shifts the aggregate demand curve rightward.
b. No, because it cannot shift the aggregate demand curve rightward.
c. Yes, because it shifts the aggregate demand curve leftward.
d. Yes, because it shifts the aggregate supply curve rightward.
Exhibit 7-4Economic Data for Country A
Did Country A experience a recession (based on the standard definition) in 2012?
a. Yes, because Real GDP declined during two consecutive quarters in 2012
b. No, because Real GDP did not decline during three consecutive quarters in 2012.
c. Yes, because Real GDP was lower at the end of the year than it was at the beginning
of the year.
d. This information cannot be determined because the determination of a recession is
based upon GDP not Real GDP.
If there is complete crowding out, the change in Real GDP that results from a given
change in autonomous spending will be
a. zero.
b. greater than if there was incomplete crowding out.
c. infinite.
d. There is not enough information to answer the question.
A theory predicts that the more a student studies, the higher his or her grades will
be.This theory is
a. not falsifiable.
b. falsifiable.
c. too difficult a theory to test.
d. inconsistent with the fact that some students study less than other students, yet
receive higher grades.
e. b and d
Government purchases consist of the total dollar amount(s) spent on goods and services
by the
a. federal government only.
b. state governments only.
c. local governments only.
d. state and local governments, but not the federal government.
e. federal, state, and local governments.
If there is always a 4-for-1 tradeoff between producing good X and good Y, it follows
that the opportunity cost of X (in terms of Y) ____________________ and the PPF for
these two goods is ______________________.
a. decreases at low levels of X; a straight line
b. rises at high levels of Y; bowed-outward
c. decreases at high levels of X; bowed-outward
d. is always the same; a straight line
Some economists argue that GDP overstates overall economic welfare because it does
not include the impact of bads such as pollution.
a. True
b. False