ECON 4a

  Question 1

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If government spending is used to bolster the level of economic activity, the type of financing available to the U.S. government that would increase aggregate spending the most is

  Question 2

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The Kennedy administration’s guidepost for wage increases was related to

  Question 3

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Fiscal policy deals with

  Question 4

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Cost-push inflation is characterized by

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The most effective means of stimulating the economy during a recession is for the federal government to

  Question 6

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The most effective way for the government to develop a surplus as a contractionary measure is to increase taxes and hold or decrease spending.

  Question 7

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Stagflation is a mixture of

  Question 8

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Fiscal policy is likely to be more effective than monetary policy when used to increase aggregate demand during periods of serious unemployment.

  Question 9

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Deflation and disinflation are synonymous terms.

  Question 10

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The policies of the New Deal in the 1930s, in an effort to alleviate unemployment, paralleled those of

  Question 11

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If business leaders thought an existing tax credit provision on new investment might be suspended because of inflation, this would cause

  Question 12

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A disadvantage of using public works to reduce unemployment is that

  Question 13

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Changing the discount rate is a tool of fiscal policy.

  Question 14

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The roughly coincident indicators have their upward and downward turning points prior to the upward and downward turning points of real GDP.

  Question 15

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A noticeable drop in the level of business activity is known as a

  Question 16

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During the expansion phase of the business cycle, profit margins increase due to a widening cost-price relationship.

  Question 17

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Prior to 2006, the most severe trough in a U.S. business cycle since the Great Depression occurred in 1982.

  Question 18

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Schumpeter’s theory that business cycles are caused by breakthroughs in the form of new products, new machines, or new production techniques is known as the

  Question 19

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The measurement of a business cycle is obtained by adjusting the real GDP for seasonal variation, the trend, and random fluctuations.

  Question 20

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According to the rational expectations theory,

  Question 21

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The theory of rational expectations is classified as a psychological cause of the business cycle.

  Question 22

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In the pattern of the business cycle, generally

  Question 23

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A recession occurs whenever there’s a decline in real GDP for two or more successive quarters.

  Question 24

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Recurring fluctuations in business activity over the course of one year are known as

  Question 25

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During the expansion phase of the business cycle, we would normally expect to see real income ________, price level ________, and unemployment rate_______.

  Question 26

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Which of the following is not a phase of the business cycle?

  Question 27

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Employment discrimination refers to

  Question 28

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Poverty is a condition that randomly strikes all members of the population equally.

  Question 29

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Household wealth is defined as income minus liabilities.

  Question 30

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In 2004, the top 5 percent of households earned approximately

  Question 31

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If new highly progressive tax laws are enacted, the resulting Lorenz curve will move to the right-hand corner of the graph.

  Question 32

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According to the Department of Commerce, a person living alone constitutes a single-person family.

  Question 33

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A country with an equal distribution of income will have a higher standard of living than a country with a more unequal distribution of income.

  Question 34

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The total number of people in poverty has changed little since the late 1960s.

  Question 35

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An income distribution in which all households receive exactly the same income is referred to as a(n)

  Question 36

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The New Economy is one of

  Question 37

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The poverty rate for female householders without a husband present exceeds the poverty rate for blacks and Hispanics.

  Question 38

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Geographically, a higher percentage of the poor live in the

  Question 39

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A sizable part of increases in the U.S. labor force in the past few decades has been due to the influx of women.

  Question 40

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Since 1970, U.S. union membership has

  Question 41

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The amount of unemployment that arises because workers are temporarily between jobs or new entrants to the labor force is known as

  Question 42

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The total U.S. labor force excludes members of the armed services stationed outside the United States.

  Question 43

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The Employment Act of 1946 set a specific annual inflation rate target of 3 percent.

  Question 44

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The natural rate of unemployment is the rate of unemployment we would expect to find

  Question 45

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Persons who do not work because of bad weather or vacation are part of

  Question 46

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The official rate of unemployment is based on a(n)

  Question 47

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In recent years, the U.S. labor force has experienced

  Question 48

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Which of the following has not been outsourced from the U.S.?

  Question 49

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The Full Employment and Balanced Growth Act of 1978 is also known as the Deficit Reduction Act.

  Question 50

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In order to be effective, the minimum wage must be