Question 1

Which of the following best describes the Employment Act of 1946?

Accepted Answer

A)  A piece of New Deal legislation that had to be postponed until after the war 
B)  An effort to stabilize the U.S. balance of payments as the world moved toward ?using the U.S. dollar as the main reserve currency 
C)  An attempt to reduce the overall extent of federal responsibility in the ?post-war national economy 
D)  All of the above 
A)  A piece of New Deal legislation that had to be postponed until after the war 
B)  An effort to stabilize the U.S. balance of payments as the world moved toward ?using the U.S. dollar as the main reserve currency 
C)  An attempt to reduce the overall extent of federal responsibility in the ?post-war national economy 
D)  All of the above

Question 2

The Employment Act of 1946,which sets up the Council of Economic Advisers,

Accepted Answer

A)  was the final legislation of the New Deal. 
B)  grew out of the War Manpower Board's experience. 
C)  grew out of financial negotiations with Britain. 
D)  was the product of New Deal experience with fiscal policy. 
A)  was the final legislation of the New Deal. 
B)  grew out of the War Manpower Board's experience. 
C)  grew out of financial negotiations with Britain. 
D)  was the product of New Deal experience with fiscal policy.

Question 3

Moore (1959)finds evidence to suggest that the mild cyclical deviations in employment and output ?of the Korean War were caused by progressive income taxes and unemployment compensation.

Accepted Answer

A) True 
 B)False

Question 4

Describe the origins of and the economic history behind the European Common Market.

Accepted Answer

The European Common Market, also known a

Question 5

The natural rate of unemployment is not zero.It is at least 5 percent,allowing for individuals who are frictionally and structurally unemployed.

Accepted Answer

A) True 
 B)False

Question 6

The post-World War II prosperity (1945-1949)was due in large part to Harry Truman's commitment to maintaining high levels of federal expenditures after World War II (1941-45).

Accepted Answer

A) True 
 B)False

Question 7

Explain how the U.S.produced its own "competition" in the world.Identify the benefits and costs ?of doing so.

Accepted Answer

The United States has produced its own c

Question 8

From the end of World War II to the beginning of the Johnson presidency (1945-1962),what did the "New Frontier" mean in terms of the economy?

Accepted Answer

The "New Frontier" was a term coined by

Question 9

Between 1945 and 1950,federal expenditures

Accepted Answer

A)  dropped by two-fifths despite the Marshall Plan. 
B)  dropped by two-fifths because of dissipation of wartime expenditures. 
C)  increased by two-fifths because of increased spending in private consumer and business markets. 
D)  increased by two-fifths because of the Marshall Plan. 
A)  dropped by two-fifths despite the Marshall Plan. 
B)  dropped by two-fifths because of dissipation of wartime expenditures. 
C)  increased by two-fifths because of increased spending in private consumer and business markets. 
D)  increased by two-fifths because of the Marshall Plan.

Question 10

Explain the economic theory behind Moore's (1959)claim that a progressive income tax system and unemployment compensation are likely the "automatic stabilizers" causing some of the cyclical fluctuations in the U.S.economy experienced during the post-war era.

Accepted Answer

Moore's (1959) claim is based on the eco

Question 11

Compared to earlier times,the period of the 1950s to the early 1960s was one characterized by

Accepted Answer

A)  temporary deficit spending of the government. 
B)  permanent deficit spending of the government. 
C)  temporary surplus spending of the government. 
D)  permanent surplus spending of the government. 
A)  temporary deficit spending of the government. 
B)  permanent deficit spending of the government. 
C)  temporary surplus spending of the government. 
D)  permanent surplus spending of the government.

Question 12

In implementing the Marshall Plan (1948-51),

Accepted Answer

A)  the United States discouraged European countries from cooperating among themselves to increase trade, as it was felt that economic recovery would be better achieved through competition. 
B)  the United States, in order to offset the large capital outflow caused by loans and grants made abroad, tried to maintain a balance of payments surplus. 
C)  the United States offered financial aid to many of the economies in Western Europe devastated by World War II. 
D)  the U.S. dollar was devalued 30% against other world currencies. 
A)  the United States discouraged European countries from cooperating among themselves to increase trade, as it was felt that economic recovery would be better achieved through competition. 
B)  the United States, in order to offset the large capital outflow caused by loans and grants made abroad, tried to maintain a balance of payments surplus. 
C)  the United States offered financial aid to many of the economies in Western Europe devastated by World War II. 
D)  the U.S. dollar was devalued 30% against other world currencies.

Question 13

Like the two world wars,the Korean War (1950-53)produced shortages of resources,labor and output due to large-scale foreign military deployments and demands for the production of war-related goods and services.

Accepted Answer

A) True 
 B)False

Question 14

What did the Economic Act of 1946 require the U.S.government to do?

Accepted Answer

A)  Keep its "hands off" the economy 
B)  Present an annual "Economic Report of the President" 
C)  Let market forces determine equilibrium quantities of labor hired and wages paid 
D)  Maintain a current account surplus where U.S. exports exceeded imports each year 
A)  Keep its "hands off" the economy 
B)  Present an annual "Economic Report of the President" 
C)  Let market forces determine equilibrium quantities of labor hired and wages paid 
D)  Maintain a current account surplus where U.S. exports exceeded imports each year

Question 15

What agreement was made between the Federal Reserve System and the U.S.Treasury in 1951? Why was it significant?

Accepted Answer

In 1951, an agreement was made between t

Question 16

The Bretton Woods Systems established

Accepted Answer

A)  the International Monetary Fund. 
B)  the International Bank for Reconstruction and Development (the World Bank). 
C)  the International Trade Organization (WTO). 
D)  all of the above. 
A)  the International Monetary Fund. 
B)  the International Bank for Reconstruction and Development (the World Bank). 
C)  the International Trade Organization (WTO). 
D)  all of the above.

Question 17

Under the Marshall Plan (1948-51),the U.S.granted resources to and transfused U.S.dollars into European countries devastated by World War II.In return,the U.S.requested coordinated plans of European recovery that promoted efficient and effective production in private markets with minimal government interference.

Accepted Answer

A) True 
 B)False

Question 18

The growing post-war (1945-50)economy was sustained by

Accepted Answer

A)  an expansion of government expenditures. 
B)  the general expansion of nearly all sectors despite the decline in government expenditures. 
C)  significant increases in both government and private expenditures. 
D)  trade deficits. 
A)  an expansion of government expenditures. 
B)  the general expansion of nearly all sectors despite the decline in government expenditures. 
C)  significant increases in both government and private expenditures. 
D)  trade deficits.

Question 19

What characterized the 1950-1962 economy (from the Korean War to the last year of John F.Kennedy's presidency)?

Accepted Answer

A)  Significant inflation 
B)  Deflation 
C)  High unemployment 
D)  Falling prices and wages 
A)  Significant inflation 
B)  Deflation 
C)  High unemployment 
D)  Falling prices and wages

Question 20

Compare and contrast the International Bank for Reconstruction and Development (the World Bank)and the World Trade Organization using Internet resources.Identify what they have in common and describe how they differ.

Accepted Answer

The International Bank for Reconstructio

Exam 27: Before the New Frontier: The Postwar Economy

Which of the following best describes the Employment Act of 1946?

The Employment Act of 1946,which sets up the Council of Economic Advisers,

Moore (1959)finds evidence to suggest that the mild cyclical deviations in employment and output ?of the Korean War were caused by progressive income taxes and unemployment compensation.

Describe the origins of and the economic history behind the European Common Market.

The natural rate of unemployment is not zero.It is at least 5 percent,allowing for individuals who are frictionally and structurally unemployed.

The post-World War II prosperity (1945-1949)was due in large part to Harry Truman's commitment to maintaining high levels of federal expenditures after World War II (1941-45).

Explain how the U.S.produced its own "competition" in the world.Identify the benefits and costs ?of doing so.

From the end of World War II to the beginning of the Johnson presidency (1945-1962),what did the "New Frontier" mean in terms of the economy?

Between 1945 and 1950,federal expenditures

Explain the economic theory behind Moore's (1959)claim that a progressive income tax system and unemployment compensation are likely the "automatic stabilizers" causing some of the cyclical fluctuations in the U.S.economy experienced during the post-war era.

Compared to earlier times,the period of the 1950s to the early 1960s was one characterized by

In implementing the Marshall Plan (1948-51),

Like the two world wars,the Korean War (1950-53)produced shortages of resources,labor and output due to large-scale foreign military deployments and demands for the production of war-related goods and services.

What did the Economic Act of 1946 require the U.S.government to do?

What agreement was made between the Federal Reserve System and the U.S.Treasury in 1951? Why was it significant?

The Bretton Woods Systems established

The growing post-war (1945-50)economy was sustained by

What characterized the 1950-1962 economy (from the Korean War to the last year of John F.Kennedy's presidency)?

Compare and contrast the International Bank for Reconstruction and Development (the World Bank)and the World Trade Organization using Internet resources.Identify what they have in common and describe how they differ.

Overseas Empire

Colonial Development

America on the Eve of Revolution

Gaining Independence

Westward Expansion

Population and Labor Force

Law and the Rise of Classical American Capitalism

Transportation, Internal Improvements, and Urbanization

Agricultural Expansion: The Conflict of Two Systems on the Land

The Debate over Slavery

The Early Industrial Sector

The Financial System and the International Economy

Economic Effects of the Civil War

Railroads and Economic Development

Post-Civil War Agriculture

Population Growth and the Atlantic Migration

Industrialization, Entrepreneurship, and Urban Growth

Big Business and Government Intervention

Financial Developments 1863–1914

The Giant Economy and Its International Relations

Labor and the Law

The Command Economy Emerges: World War I

Normalcy”: 1919–1929

The Great Depression

The New Deal

The “Prosperity” of Wartime

Population, Health, and Labor

Postwar Industry and Agriculture

To the New Millennium and Beyond

Does Our Past Have a Future?

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