Which of the following statements regarding growth was brought out from the material in Chapter 15?
A. There is no correlation between the volatility in growth rates and annual output growth.
B. Stability results in higher output growth rates.
C. The more volatile the growth rate, the higher is the annual output growth.
D. Inflation volatility results in higher output growth rates.
Answer: B
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Since 1950, the standard of living in the United States has:
A. decreased when measured by output per person, but increased when measured by total output. B. decreased when measured by both total output and output per person. C. increased when measured by output per person, but decreased when measured by total output. D. increased when measured by both total output and output per person.
In a diagram with the total cost curve and the total variable cost curve, as output increases, the vertical distance between these two curves
A) is constant. B) decreases. C) increases. D) gets smaller and then bigger again.
A larger controversy of the financial crisis among both members of Congress and the general public had to do with the Fed's expanded role in the economy
a. True b. False
Crowding out can best be defined as
A. private investment increases growth rates and decreases deficits. B. restrictive monetary policy raises interest rates and decreases investment. C. government deficits increase interest rates and decrease investment. D. consumption spending increases interest rates and decreases investment.