2002secondprelimmakeup - I. Multiple Choice Questions (10...

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Unformatted text preview: I. Multiple Choice Questions (10 points – Each question is worth ½ pt.) 1. Which of the following groups are against any type of intervention? a. Keynesians b. Monetarists c. Supply-side economists d. New classical economists 2. If British tastes changed so that Britons began to desire American goods, there would be a. A rightward movement along the supply curve of British pounds curve in the dollar-pound market. b. A leftward movement along the supply curve of British pounds curve in the dollar-pound market. c. A rightward shift of the supply of British pounds curve in the dollar-pound market. d. A leftward shift of the supply of British pounds curve in the dollar-pound market. 3. According to the Classical theory, an expansionary monetary policy the price level and ______ output a. Decreases; Increases b. Increases; Does not change c. Increases; Increases d. Does not change; Does not change 4. Which of the following is most likely to cause stagflation? a. Falling prices on imported oil. b. An increase in the money supply. c. A decrease in the money supply. d. Rising prices on imported oil. 5. The balanced-budget amendment would have been destabilizing because, if the economy dips into a recession, the legislation would require ________ in government spending and/or _________ in net taxes. a. increases; increases b. increases; decreases c. decreases; increases d. decreases; decreases 6. The European Union imposes a ban on agricultural imports from the United States. From the U.S. point of view, this is best described as a a. positive demand shock. b. positive supply shock. c. negative demand shock. d. negative supply shock. 7. Under which of the following assumptions could we state that inflation is a purely monetary phenomenon? a. Velocity is constant. b. Real output is constant. c. Both velocity and real output are constant. d. The money supply is constant. 8. The trade feedback effect shows that an increase in U.S. _________ will result in a subsequent __________. a. exports; depreciation in exchange rates. b. imports; appreciation in exchange rates c. income; increase in imports and increase in exports d. trade; reduction in income in the U.S. 9. Which of the following is the type of trade barrier preferred under the GATT and the WTO?...
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This note was uploaded on 09/05/2011 for the course ECON 1120 at Cornell University (Engineering School).

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2002secondprelimmakeup - I. Multiple Choice Questions (10...

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