Question 1

Inflation-adjusted home prices in the U.S.

Accepted Answer

A) experienced a huge increase from the late 1990s through 2006 
B) were higher in 1982 than in 2002 
C) decreased throughout the 1990s but then rose sharply after 2002 
D) increased sharply in the mid-1980s and then again in the early 1990s 
E) steadily declined in the 1980s and 1990s 
A) experienced a huge increase from the late 1990s through 2006 
B) were higher in 1982 than in 2002 
C) decreased throughout the 1990s but then rose sharply after 2002 
D) increased sharply in the mid-1980s and then again in the early 1990s 
E) steadily declined in the 1980s and 1990s

Question 2

If we look at inflation as measured by the GDP deflator from 1947 to 2012, we see that

Accepted Answer

A) inflation was much higher in 1951 than in 1981 
B) inflation was at its highest in 1975 
C) inflation was at its lowest in 1991 
D) all of the above 
E) none of the above 
A) inflation was much higher in 1951 than in 1981 
B) inflation was at its highest in 1975 
C) inflation was at its lowest in 1991 
D) all of the above 
E) none of the above

Question 3

According to John Maynard Keynes, the major cause of the Great Depression was

Accepted Answer

A) the collapse of the stock market 
B) the inability of the Fed to conduct open market sales 
C) the high interest rates that existed at the time 
D) the huge increase in the federal budget deficit 
E) none of the above 
A) the collapse of the stock market 
B) the inability of the Fed to conduct open market sales 
C) the high interest rates that existed at the time 
D) the huge increase in the federal budget deficit 
E) none of the above

Question 4

According to the monetarists, the Great Depression

Accepted Answer

A) was a result of a decline in investment opportunities and there was little that the Fed could have done to avoid the depression 
B) proved that the economy only remains at full employment if the Fed employs active counter-cyclical monetary policy 
C) was the result of the failure of the Fed to prevent bank failures and halt the decline in money supply from 1930 to 1933 
D) was caused by the Fed's insistence that inflation needed to be drastically reduced 
E) all of the above 
A) was a result of a decline in investment opportunities and there was little that the Fed could have done to avoid the depression 
B) proved that the economy only remains at full employment if the Fed employs active counter-cyclical monetary policy 
C) was the result of the failure of the Fed to prevent bank failures and halt the decline in money supply from 1930 to 1933 
D) was caused by the Fed's insistence that inflation needed to be drastically reduced 
E) all of the above

Question 5

When we look at inflation-adjusted home prices in the U.S.from 1910-2010, we see that

Accepted Answer

A) in real terms homes were more expensive in the 1930s than in the 1990s 
B) the sharpest increase in home prices occurred right after World War II 
C) the sharpest increase in home prices occurred from the late 1990s to about 2006 
D) from 2000-2006, nominal housing prices increased sharply but real housing prices decreased slightly 
E) none of the above 
A) in real terms homes were more expensive in the 1930s than in the 1990s 
B) the sharpest increase in home prices occurred right after World War II 
C) the sharpest increase in home prices occurred from the late 1990s to about 2006 
D) from 2000-2006, nominal housing prices increased sharply but real housing prices decreased slightly 
E) none of the above

Question 6

During the period known as "the Great Moderation," the U.S.quarterly GDP growth rate

Accepted Answer

A) never hit negative values 
B) consistently exceeded 2 percent 
C) fluctuated much less than in the previous three decades 
D) fluctuated between 1 percent and 4 percent 
E) fluctuated very little and remained around 2.5 to 3.0 percent 
A) never hit negative values 
B) consistently exceeded 2 percent 
C) fluctuated much less than in the previous three decades 
D) fluctuated between 1 percent and 4 percent 
E) fluctuated very little and remained around 2.5 to 3.0 percent

Question 7

During the period referred to as "the Great Moderation"

Accepted Answer

A) there were only mild economic fluctuations despite severe supply shocks 
B) few policy changes were implemented so output stayed close to the full employment level 
C) economic fluctuations were largely contained through effective policy changes 
D) inflation consistently exceeded 4 percent 
E) all of the above 
A) there were only mild economic fluctuations despite severe supply shocks 
B) few policy changes were implemented so output stayed close to the full employment level 
C) economic fluctuations were largely contained through effective policy changes 
D) inflation consistently exceeded 4 percent 
E) all of the above

Question 8

Unemployment rates during and shortly after the Great Recession

Accepted Answer

A) reached levels unseen since the Great Depression 
B) exceeded those of the Great Depression 
C) exceeded those during and shortly after the recession in 1981/82 
D) reached close to 10 percent but the duration of unemployment was fairly short 
E) were lower than in 1983 but for many the period of unemployment was much longer 
A) reached levels unseen since the Great Depression 
B) exceeded those of the Great Depression 
C) exceeded those during and shortly after the recession in 1981/82 
D) reached close to 10 percent but the duration of unemployment was fairly short 
E) were lower than in 1983 but for many the period of unemployment was much longer

Question 9

Which of the following was TRUE about the Great Recession of 2007-09?

Accepted Answer

A) the U.S. government quickly implemented austerity programs 
B) monetary and fiscal policy responses to the crisis were implemented too slowly 
C) while the unemployment rate rose sharply, long-term unemployment remained steady 
D) financial markets froze, making it difficult for businesses to finance inventories 
E) none of the above 
A) the U.S. government quickly implemented austerity programs 
B) monetary and fiscal policy responses to the crisis were implemented too slowly 
C) while the unemployment rate rose sharply, long-term unemployment remained steady 
D) financial markets froze, making it difficult for businesses to finance inventories 
E) none of the above

Question 10

During and after which of the following recessions did the U.S.experience the steepest increase in the average duration of unemployment?

Accepted Answer

A) 2007-09 
B) 2001-02 
C) 1991-92 
D) 1981-82 
E) 1974-75 
A) 2007-09 
B) 2001-02 
C) 1991-92 
D) 1981-82 
E) 1974-75

Inflation-adjusted home prices in the U.S.

If we look at inflation as measured by the GDP deflator from 1947 to 2012, we see that

According to John Maynard Keynes, the major cause of the Great Depression was

According to the monetarists, the Great Depression

When we look at inflation-adjusted home prices in the U.S.from 1910-2010, we see that

During the period known as "the Great Moderation," the U.S.quarterly GDP growth rate

During the period referred to as "the Great Moderation"

Unemployment rates during and shortly after the Great Recession

Which of the following was TRUE about the Great Recession of 2007-09?

During and after which of the following recessions did the U.S.experience the steepest increase in the average duration of unemployment?

Introduction

National income accounting

Growth and accumulation

Growth and policy

Aggregate supply and demand

Aggregate supply and the phillips curve

Unemployment

Inflation

Policy preview

Income and spending

Money, interest, and income

Monetary and fiscal policy

International linkages

Consumption and saving

Investment spending

The demand for money

The fed, money, and credit

Policy

Financial markets and asset prices

The national debt

Inflation and hyperinflation

International adjustment and interdependence

Advanced topics

Filters

Exam 21: Recession and depression

Inflation-adjusted home prices in the U.S.

If we look at inflation as measured by the GDP deflator from 1947 to 2012, we see that

According to John Maynard Keynes, the major cause of the Great Depression was

According to the monetarists, the Great Depression

When we look at inflation-adjusted home prices in the U.S.from 1910-2010, we see that

During the period known as "the Great Moderation," the U.S.quarterly GDP growth rate

During the period referred to as "the Great Moderation"

Unemployment rates during and shortly after the Great Recession

Which of the following was TRUE about the Great Recession of 2007-09?

During and after which of the following recessions did the U.S.experience the steepest increase in the average duration of unemployment?

Introduction

National income accounting

Growth and accumulation

Growth and policy

Aggregate supply and demand

Aggregate supply and the phillips curve

Unemployment

Inflation

Policy preview

Income and spending

Money, interest, and income

Monetary and fiscal policy

International linkages

Consumption and saving

Investment spending

The demand for money

The fed, money, and credit

Policy

Financial markets and asset prices

The national debt

Inflation and hyperinflation

International adjustment and interdependence

Advanced topics

Filters