Question 1

The existence of recessions highlights

Accepted Answer

A)  the strengths of the Federal Reserve 
B)  the need for the "other things equal" assumption 
C)  our failure to consider differences between the short run and long run 
D)  how confusing the economy can become 
E)  the interdependence between production and income 
A)  the strengths of the Federal Reserve 
B)  the need for the "other things equal" assumption 
C)  our failure to consider differences between the short run and long run 
D)  how confusing the economy can become 
E)  the interdependence between production and income

Question 2

Since a long run consists of many short runs,the classical model is

Accepted Answer

A)  incorrect every time we look at output data 
B)  accurate during the short run 
C)  paradoxically quite accurate in the long run;however,it is not very accurate in the short run 
D)  our best guide to fluctuations in the economy 
E)  paradoxically quite accurate in the short run;however,it is not very accurate in the long run 
A)  incorrect every time we look at output data 
B)  accurate during the short run 
C)  paradoxically quite accurate in the long run;however,it is not very accurate in the short run 
D)  our best guide to fluctuations in the economy 
E)  paradoxically quite accurate in the short run;however,it is not very accurate in the long run

Question 3

The classical model predicts the real GDP will always be

Accepted Answer

A)  rising. 
B)  falling. 
C)  equal to its full-employment level. 
D)  constant. 
E)  equal to its full-taxation level. 
A)  rising. 
B)  falling. 
C)  equal to its full-employment level. 
D)  constant. 
E)  equal to its full-taxation level.

Question 4

In the classical model,an increasing demand for labor will

Accepted Answer

A)  cause an expansion with higher employment and a higher real wage. 
B)  cause a shortage of labor because the labor market always clears. 
C)  cause a recession with lower employment and a lower real wage. 
D)  cause a recession because wages are fixed in the short run. 
E)  cause an expansion with lower employment and a higher real wage. 
A)  cause an expansion with higher employment and a higher real wage. 
B)  cause a shortage of labor because the labor market always clears. 
C)  cause a recession with lower employment and a lower real wage. 
D)  cause a recession because wages are fixed in the short run. 
E)  cause an expansion with lower employment and a higher real wage.

Question 5

During the Great Depression of the 1930s,it took the economy only a couple of years to return to full employment.

Accepted Answer

A) True 
 B)False

The existence of recessions highlights

Since a long run consists of many short runs,the classical model is

The classical model predicts the real GDP will always be

In the classical model,an increasing demand for labor will

During the Great Depression of the 1930s,it took the economy only a couple of years to return to full employment.

What is Economics?

Scarcity, Choice, and Economic Systems

Supply and Demand

Working With Supply and Demand

What Macroeconomics Tries to Explain

Production, Income, and Employment

The Price Level and Inflation

The Classical Long run Model

Economic Growth and Rising Living Standards

The Short-run Macro Model

Fiscal Policy

Money, Banks, and the Federal Reserve

The Money Market and Monetary Policy

Aggregate Demand and Aggregate Supply

Inflation and Monetary Policy

Exchange Rates and Macroeconomic Policy

Filters

Exam 10: Economic Fluctuations

The existence of recessions highlights

Since a long run consists of many short runs,the classical model is

The classical model predicts the real GDP will always be

In the classical model,an increasing demand for labor will

During the Great Depression of the 1930s,it took the economy only a couple of years to return to full employment.

What is Economics?

Scarcity, Choice, and Economic Systems

Supply and Demand

Working With Supply and Demand

What Macroeconomics Tries to Explain

Production, Income, and Employment

The Price Level and Inflation

The Classical Long run Model

Economic Growth and Rising Living Standards

The Short-run Macro Model

Fiscal Policy

Money, Banks, and the Federal Reserve

The Money Market and Monetary Policy

Aggregate Demand and Aggregate Supply

Inflation and Monetary Policy

Exchange Rates and Macroeconomic Policy

Filters