Chapter 9-MacroTB - CHAPTER 9 An Introduction to the Short Run MULTIPLE-CHOICE 1 John Maynard Keynes is famous for saying"In the long run a there

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MULTIPLE-CHOICE 1. John Maynard Keynes is famous for saying, “In the long run __________.” a. there is no tomorrow. b. we are all dead. c. the only thing we have to fear is fear itself. d. the study of economics will be redundant. e. None of the above. Answer: b. Section: Introduction 2. One implication of the Keynes quote, “In the long run we are all dead,” is __________. a. the economy is always in its long-run equilibrium. b. we know with certainty what the long run is. c. the long run is made up of a sequence of short runs. d. there is no difference between the long and short runs. e. there is no short run. Answer: c. Section: Introduction 3. The long-run model determines __________ and __________, while the short-run model determines __________ and __________. a. potential output; long-run inflation; current output; current inflation b. potential output; unemployment; current output; long-run inflation c. current output; long-run inflation; unemployment; current inflation d. potential output; unemployment; unemployment; current inflation e. current output; unemployment; potential output; current inflation Answer: a. Section: 9.2 4. The long-run model determines __________ and __________. a. current output; unemployment b. potential output; unemployment c. current output; long-run inflation d. potential output; unemployment e. potential output; long-run inflation Answer: e. Section: 9.2 5. The short-run model determines __________ and __________. a. current output; current inflation b. current output; long-run inflation c. unemployment; current inflation d. unemployment; potential output e. potential output; unemployment Answer: a. Section: 9.2 6. Which of the following is not an example of a short- term macroeconomic “shock”? a. political unrest b. a change in the tax code c. a drought d. increased military spending e. None of the above. Answer: e. Section: 9.2 84 An Introduction to the Short Run CHAPTER 9
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An Introduction to the Short Run | 85 7. Which of the following is not an example of a short- term macroeconomic “shock”? a. a drought b. planned investment expenditures c. increased military spending d. a change in the tax code e. political unrest Answer: b. Section: 9.2 8. Which of the following is not an example of a short- term macroeconomic “shock”? a. planned investment expenditures b. a hurricane c. increased military spending d. a change in the tax code e. new technology Answer: a. Section: 9.2 9. Which of the following is not an example of a short- term macroeconomic “shock”? a. increased oil prices b. a drought c. increased military spending d. a change in the tax code e. None of the above. Answer: e. Section: 9.2 10. Which of the following is not an example of a short- term macroeconomic “shock”? a. a drought b. high unemployment c. increased military spending d. a change in the tax code e. political unrest Answer: b. Section: 9.2 11. Which of the following is not an example of a short- term macroeconomic “shock”?
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This note was uploaded on 01/20/2011 for the course ACCT ACCT 3371 taught by Professor Smart during the Spring '10 term at Rensselaer Polytechnic Institute.

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Chapter 9-MacroTB - CHAPTER 9 An Introduction to the Short Run MULTIPLE-CHOICE 1 John Maynard Keynes is famous for saying"In the long run a there

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