1. Classical economists believed that
a. the government can best help the economy by leaving it alone
b. the economy is controlled by the government
c. laissez-faire will hurt the economy
d. the government should play an active role in controlling the economy
e. economists should offer guidance to governmental leaders.
2. If real GDP is increasing at a 2 percent annual rate while the unemployment rate is 7 percent, the economy is
a. experiencing high prices and low inflation
b. experiencing a slump
c. experiencing an increase of 2 percent in real annual per capita GDP
d. not achieving full economic potential
e. producing along its production possibilities frontier
3. From 1929 to 1993, the first four years of the Great Depression, U.S. output dropped by more than
a. 5 percent
b. 10 percent
c. 80 percent
d. 25 percent
e. 50 percent
4. Economists regard some inflation as good for the economy.
a. True
b. False
5. The inflation rate in the United States has always been positive.
a. True
b. False
6. Why is inflation considered a problem?
a. It is costly for society.
b. Government gains too much economic power
c. Firms gain too much economic power
d. It is always very high when it exists.
e. People prefer falling prices
1. Classical economists believed that
a. the government can best help the economy by leaving it alone
b. the economy is controlled by the government
c. laissez-faire will hurt the economy
d. the government should play an active role in controlling the economy
e. economists should offer guidance to governmental leaders.
2. If real GDP is increasing at a 2 percent annual rate while the unemployment rate is 7 percent, the economy is
a. experiencing high prices and low inflation
b. experiencing a slump
c. experiencing an increase of 2 percent in real annual per capita GDP
d. not achieving full economic potential
e. producing along its production possibilities frontier
3. From 1929 to 1993, the first four years of the Great Depression, U.S. output dropped by more than
a. 5 percent
b. 10 percent
c. 80 percent
d. 25 percent
e. 50 percent
4. Economists regard some inflation as good for the economy.
a. True
b. False
5. The inflation rate in the United States has always been positive.
a. True
b. False
6. Why is inflation considered a problem?
a. It is costly for society.
b. Government gains too much economic power
c. Firms gain too much economic power
d. It is always very high when it exists.
e. People prefer falling prices
Related textbook solutions
Related questions
Which of the following is not true about classical economists?
|
a. |
They criticized mercantilism as an economic system. |
|
b. |
They advocated laissez-faire policies to promote economic growth. |
|
c. |
They believed the economy would naturally tend toward full employment. |
|
d. |
They believed prices and wages were flexible. |
|
e. |
They sought government intervention in markets to promote fairness. |
