Question 1

The hope of "Reaganomics"-that ending inflation will stimulate economic growth-is supported by the experience of 1945-49.

Accepted Answer

A) True 
 B)False

Question 2

The Economic Stabilization Act of 1970 gave private industry the right to establish wage and price controls,but President Nixon vetoed this power.

Accepted Answer

A) True 
 B)False

Question 3

Discuss the "new breed" of federal non-market controls that emerged after 1962.Identify exactly what distinguishes this modern set of federal interventionist agencies and policies from those of ?the past.

Accepted Answer

The "new breed" of federal non-market co

Question 4

The persistent problem of inflation,beginning in the late 1960s,had its causes in all of the following except

Accepted Answer

A)  The full-scale entrance of the United States into the Vietnam War in 1965 
B)  "Oil shocks" in the 1970s 
C)  Rising production costs in almost every sector in the economy due to rising energy costs 
D)  Rising corporate taxes which raised the cost of doing business 
A)  The full-scale entrance of the United States into the Vietnam War in 1965 
B)  "Oil shocks" in the 1970s 
C)  Rising production costs in almost every sector in the economy due to rising energy costs 
D)  Rising corporate taxes which raised the cost of doing business

Question 5

Monetarists maintain that the increase in the money supply can explain the inflation of the 1970s ?and 1980s when one considers the bonds purchased by the Fed to finance the federal deficits of the period.

Accepted Answer

A) True 
 B)False

Question 6

In the 1970s,the relationship between stock-market prices and the consumer price index was roughly equal to that of the 1920s,rising in roughly equal amounts.

Accepted Answer

A) True 
 B)False

Question 7

Describe the U.S.economy between 1980 and 2001.Identify those factors contributing to the economic growth of this period.

Accepted Answer

The U.S. economy between 1980 and 2001 e

Question 8

Describe the U.S.economy between 1961 and 1980.Identify those factors hindering economic growth during this period.

Accepted Answer

The U.S. economy between 1961 and 1980 e

Question 9

Hughes and Cain (2011)suggest that between 1960 and 1995,the nation witnessed "social and economic changes of extraordinary magnitude," and that the "American republic headed into policies that changed the economy beyond recognition." This sounds remarkable.What were these changes?

Accepted Answer

The social and economic changes of extra

Question 10

Political and social desires to increase the "quality of life" in the U.S.led to an increase in the federal funding of public libraries,television and radio as well as increases and broadened uses of federal lands,waters and parks.

Accepted Answer

A) True 
 B)False

Question 11

Discuss the government's role in exacerbating inflation in the U.S.To curtail inflation,describe those contractionary fiscal actions the government could have taken.

Accepted Answer

The government can exacerbate inflation

Question 12

Compare the Kennedy,Reagan,G.H.Bush and G.W.Bush tax cuts.Identify what they have in common and explain how they differ.

Accepted Answer

The Kennedy, Reagan, G.H. Bush, and G.W.

Question 13

Inflation leads to bracket creep,which forces taxpayers to pay a larger percentage of their income in taxes,when

Accepted Answer

A)  Changes in the real purchasing power of their income do not keep pace with inflation. 
B)  Changes in the real purchasing power of their income keep pace with inflation. 
C)  Income tax codes change quickly as inflation emerges, impacting real purchasing power. 
D)  Income tax codes increase without taxpayer knowledge, forcing them to pay higher taxes ?than anticipated. 
A)  Changes in the real purchasing power of their income do not keep pace with inflation. 
B)  Changes in the real purchasing power of their income keep pace with inflation. 
C)  Income tax codes change quickly as inflation emerges, impacting real purchasing power. 
D)  Income tax codes increase without taxpayer knowledge, forcing them to pay higher taxes ?than anticipated.

Question 14

The government played a central role in directing the post-World War II economy,causing all of the following to occur except

Accepted Answer

A)  The reduction of entitlements, such as Social Security and unemployment benefits. 
B)  Massive spending by the federal government, justified by the Cold War. 
C)  Enormously expanded government infrastructure spending on things like highways, airports, education and research and development. 
D)  There is no "except"; all of the above occurred. 
A)  The reduction of entitlements, such as Social Security and unemployment benefits. 
B)  Massive spending by the federal government, justified by the Cold War. 
C)  Enormously expanded government infrastructure spending on things like highways, airports, education and research and development. 
D)  There is no "except"; all of the above occurred.

Question 15

What was/were the most enduring legacy/legacies of the 1960s according to Hughes and ?Cain (2011)?

Accepted Answer

A)  Medicare and the War on Poverty 
B)  The violent antiwar movement 
C)  The environmental, consumer and women's movements 
D)  The black power movement 
A)  Medicare and the War on Poverty 
B)  The violent antiwar movement 
C)  The environmental, consumer and women's movements 
D)  The black power movement

Question 16

The federal government incentive to support special-interest groups (steel,auto,drug,environment)at the expense of unorganized,widely dispersed groups (for example,taxpayers or consumers)occurs

Accepted Answer

A)  only when the benefits that accrue to the special-interest group exceed the costs ?imposed on others. 
B)  when nonspecial-interest voters are unconcerned or uninformed about the issue, and ?campaign funds are readily available from the special-interest group. 
C)  only if the government action is efficient. 
D)  only if the government action will reduce the monopoly power of business or labor, ?and thereby lead to an improvement in the general welfare. 
A)  only when the benefits that accrue to the special-interest group exceed the costs ?imposed on others. 
B)  when nonspecial-interest voters are unconcerned or uninformed about the issue, and ?campaign funds are readily available from the special-interest group. 
C)  only if the government action is efficient. 
D)  only if the government action will reduce the monopoly power of business or labor, ?and thereby lead to an improvement in the general welfare.

Question 17

When did the Bretton Woods System collapse? Describe the events leading to its collapse.

Accepted Answer

The Bretton Woods System collapsed in 19

Question 18

The trade deficit and federal budget deficit plagued which U.S.presidential administration with ?high inflation and low levels of production and employment?

Accepted Answer

A)   Franklin D. Roosevelt (1933-45) 
B)  Dwight D. Eisenhower (1953-61) 
C)  John F. Kennedy (1961-63) 
D)  Ronald W. Reagan (1981-89) 
A)   Franklin D. Roosevelt (1933-45) 
B)  Dwight D. Eisenhower (1953-61) 
C)  John F. Kennedy (1961-63) 
D)  Ronald W. Reagan (1981-89)

Question 19

In the period 1960-95,the cycles of upturns and downturns in the economy (booms and recessions)

Accepted Answer

A)  were eliminated as knowledge of how the economy operated grew. 
B)  continued to occur, although not nearly as severely as prior to World War II. 
C)  grew even worse than prior to World War II. 
D)  were equally as bad as the period prior to World War II. 
A)  were eliminated as knowledge of how the economy operated grew. 
B)  continued to occur, although not nearly as severely as prior to World War II. 
C)  grew even worse than prior to World War II. 
D)  were equally as bad as the period prior to World War II.

Question 20

Explain the Kennedy Tax Cut of 1964.Why was it controversial among economists,and why did ?the tax need to be perceived as long-term and permanent if it was going to be effective?

Accepted Answer

The Kennedy Tax Cut of 1964 was a signif

Exam 30: To the New Millennium and Beyond

The hope of "Reaganomics"-that ending inflation will stimulate economic growth-is supported by the experience of 1945-49.

The Economic Stabilization Act of 1970 gave private industry the right to establish wage and price controls,but President Nixon vetoed this power.

Discuss the "new breed" of federal non-market controls that emerged after 1962.Identify exactly what distinguishes this modern set of federal interventionist agencies and policies from those of ?the past.

The persistent problem of inflation,beginning in the late 1960s,had its causes in all of the following except

Monetarists maintain that the increase in the money supply can explain the inflation of the 1970s ?and 1980s when one considers the bonds purchased by the Fed to finance the federal deficits of the period.

In the 1970s,the relationship between stock-market prices and the consumer price index was roughly equal to that of the 1920s,rising in roughly equal amounts.

Describe the U.S.economy between 1980 and 2001.Identify those factors contributing to the economic growth of this period.

Describe the U.S.economy between 1961 and 1980.Identify those factors hindering economic growth during this period.

Hughes and Cain (2011)suggest that between 1960 and 1995,the nation witnessed "social and economic changes of extraordinary magnitude," and that the "American republic headed into policies that changed the economy beyond recognition." This sounds remarkable.What were these changes?

Political and social desires to increase the "quality of life" in the U.S.led to an increase in the federal funding of public libraries,television and radio as well as increases and broadened uses of federal lands,waters and parks.

Discuss the government's role in exacerbating inflation in the U.S.To curtail inflation,describe those contractionary fiscal actions the government could have taken.

Compare the Kennedy,Reagan,G.H.Bush and G.W.Bush tax cuts.Identify what they have in common and explain how they differ.

Inflation leads to bracket creep,which forces taxpayers to pay a larger percentage of their income in taxes,when

The government played a central role in directing the post-World War II economy,causing all of the following to occur except

What was/were the most enduring legacy/legacies of the 1960s according to Hughes and ?Cain (2011)?

The federal government incentive to support special-interest groups (steel,auto,drug,environment)at the expense of unorganized,widely dispersed groups (for example,taxpayers or consumers)occurs

When did the Bretton Woods System collapse? Describe the events leading to its collapse.

The trade deficit and federal budget deficit plagued which U.S.presidential administration with ?high inflation and low levels of production and employment?

In the period 1960-95,the cycles of upturns and downturns in the economy (booms and recessions)

Explain the Kennedy Tax Cut of 1964.Why was it controversial among economists,and why did ?the tax need to be perceived as long-term and permanent if it was going to be effective?

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

Before the New Frontier: The Postwar Economy

Population, Health, and Labor

Postwar Industry and Agriculture

Does Our Past Have a Future?

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