Following world war i and world war ii the united

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21. Following World War I and World War II, the United States had a (a) small trade surplus. (b) small trade deficit. (c) large trade deficit. (d) large trade surplus. Answer: D Level of difficulty: 1 Section: 1.1 22. In the 1980s and 1990s, the United States has had a 23. A country has a trade surplus when 24. A country has a trade deficit when
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6 Abel/Bernanke • Macroeconomics, Fifth Edition 25. Data on exports and imports for the United States over the period from 1890 to 2001 show that (a) the United States had large trade deficits throughout this entire period. (b) the United States had large trade surpluses throughout this entire period. (c) the percentage of total output exported by U.S. firms fell dramatically during World War I and World War II. (d) a higher percentage of U.S. goods was exported in recent years than in earlier years. Answer: D Level of difficulty: 2 Section: 1.1 26. A central bank is an institution that 27. In the United States, monetary policy is determined by 28. The peak in U.S. government spending as a percent of GDP occurred during 29. Why were the U.S. government budget deficits of the 1980s and 1990s so unusual from a historical point of view? (a) It was the first time the U.S. government had ever run deficits. (b) In the past, deficits were usually that large only in wartime. (c) It was the first time that deficits were accompanied by very high rates of inflation. (d) It was the first time that deficits diverted funds from other productive uses, such as investment in modern equipment. Answer: B Level of difficulty: 1 Section: 1.1
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Chapter 1 Introduction to Macroeconomics 7
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