1. Which would most likely suggest that the current inflation problem in the U.S. is the fault of government policy?

Group of answer choices

A. Krugman

B. Keynes

C. Friedman

D. Both B and C are correct.

2. Which of the following is not associated with Keynesian economics?

Group of answer choices

A. A policy prescription of Laissez Faire.

B. The Great Depression.

C. A focus on aggregate demand.

D. A focus on the short run.

3. Classical economics would argue:

Group of answer choices

A. that labor markets clear and therefore unemployment will not be a problem in the long run?

B. Laissez Faire is the appropriate response to increases in the unemployment rate.

C. supply is critical, demand is not.

D. All of the above are correct.

4. Which contributed to the development to of Keynesian economics?

Group of answer choices

A. Persistent high unemployment of the 1930s.

B. The Great Depression.

C. The apparent ineffectiveness of Laissez Faire Policy by 1937.

D. All of the above are correct.

5. The U.S. Government's response to the unemployment that emerged in 2020:

Group of answer choices

A. Reflected a Keynesian view of the economy.

B. Likely increased the time it took to reduce cyclical unemployment.

C. Was consistent with a policy of Laissez Faire.

D. All of the above are correct.

6.Which of the following is a cause of structural unemployment?

Group of answer choices

A. Technological Innovation.

B. Competition from imports.

C. Recessions.

D. Both A and B but not C.

7. Which of the following is (are) true?

Group of answer choices

A. The number of individuals employed in December 2021 was lower than in December 2019.

B. The number of individuals employed in December 2022 was higher than in December 2019 but by less than 0.5 percent.

C. From December 2019 to December 2022, the U.S. labor force participation rate fell.

D. All above are correct.

8. The total labor force is 100,000 out of a possible working age population of 300,000. The total number of unemployed is 5,000. The labor force participation rate is:

Group of answer choices

A. 10 percent

B. 33 percent

C. 50 percent

D. 80 percent

9.The total labor force is 100,000 out of a possible working age population of 300,000. The total number of unemployed is 5,000. What is the unemployment rate?

Group of answer choices

A. 2.5 percent

B. 5.0 percent

C. 8.0 percent

D 10.0 percent

10. John Maynard Keynes wrote ___________while Adam Smith wrote__________:

Group of answer choices

A. General Theory; Wealth of Nations.

B. General Theory; Origin of Species.

C. Moby Dick; Wealth of Nations.

D. Wealth of Nations; General Theory.

The General Theory supported_________ ; Wealth of Nations argued ________

11. Group of answer choices

A. the notion that the labor market would clear quickly; in favor of the invisible hand.

B. the invisible hand theory; that the labor market would clear quickly.

C. active government fiscal policy; against a policy of Laissez Faire.

D. government intervention in the economy; that the labor market would clear quickly.

12. Keynesian economics holds that:

Group of answer choices

A. the invisible hand is exceptionally effective at limiting the problem of unemployment.

B. unemployment may develop in a market economy and persist.

C. socialism is better than a market economy.

D. the government should guarantee a job for everyone.