Question 1

1 out of 1 points
Correct
Keynesians:
Selected Answer:
generally favor activist government policies.
Response Feedback:
Keynesians generally favor activist government policies.

AACSB: Analytic
Blooms: Remember
Colander - Chapter 06 #30
Difficulty: 2 Medium
Learning Objective: 06-01 Discuss the history of macro; distinguishing Classical
and Keynesian; macroeconomists.
Topic: Keynesian and Classical Views
Question 2
1 out of 1 points
Correct
The Great Depression occurred in the early:
Selected Answer:
1930s.
Response Feedback:
In the 1930s, the U.S. economy fell into a deep recession that lasted for 10 yea
rs; this time is referred to as the Great Depression.

AACSB: Analytic
Blooms: Remember
Colander - Chapter 06 #32
Difficulty: 2 Medium
Learning Objective: 06-01 Discuss the history of macro; distinguishing Classical
and Keynesian; macroeconomists.
Topic: Keynesian and Classical Views
Question 3
0 out of 1 points
Incorrect
Classical economists believe that in the short-run, in the real world:
Selected Answer:
prices and wages were flexible.
Response Feedback:
Though Classicals believed that the cure to the unemployment problem was flexibl
e prices and wages, they were realistic enough to accept that in the real world,
prices and wages weren't flexible enough to bring about equilibrium in the shor
t-run.

AACSB: Analytic
Blooms: Understand
Colander - Chapter 06 #36
Difficulty: 2 Medium
Learning Objective: 06-01 Discuss the history of macro; distinguishing Classical
and Keynesian; macroeconomists.
Topic: Keynesian and Classical Views
Question 4
1 out of 1 points
Correct
Picture
Refer to the graph shown. A movement from points A to D represents a(n):
Selected Answer:
expansion.
Response Feedback:
An expansion occurs when output rises.

AACSB: Analytic
Blooms: Remember
Colander - Chapter 06 #69
Difficulty: 1 Easy
Learning Objective: 06-03 Distinguish a business cycle from structural stagnatio
n.
Topic: Business Cycles
Question 5
1 out of 1 points
Correct
After the Great Depression, economic downturns:
Selected Answer:
became shorter.
Response Feedback:
Economic downturns became shorter, but the reasons for this remain a matter of d
ebate.

AACSB: Analytic
Blooms: Remember
Colander - Chapter 06 #76
Difficulty: 2 Medium
Learning Objective: 06-03 Distinguish a business cycle from structural stagnatio
n.
Topic: Business Cycles
Question 6
1 out of 1 points
Correct
Picture
Growth in the graph shown is depicted by:
Selected Answer:
D.
Response Feedback:
Growth is shown as the smooth upward line. It is the rise in output over the lon
g-run.

AACSB: Analytic
Blooms: Analyze
Colander - Chapter 06 #45
Difficulty: 2 Medium
Learning Objective: 06-03 Distinguish a business cycle from structural stagnatio
n.
Topic: Business Cycles
Question 7
1 out of 1 points
Correct
The idea that the economy will solve its own problems and not need any stimulus
measures falls under the _________ framework.
Selected Answer:
long-run
Response Feedback:
In the long run framework the economy has no need for stimulus measures and will
return to its potential growth rate on its own.

AACSB: Analytic
Blooms: Remember
Colander - Chapter 06 #15
Difficulty: 2 Medium
Learning Objective: 06-03 Distinguish a business cycle from structural stagnatio
n.
Topic: Keynesian and Classical Views
Question 8
1 out of 1 points
Correct
The business cycle consists of several stages or phases. Which is the accurate s
equence?
Selected Answer:
Recession, trough, expansion, peak
Response Feedback:
See the figure "Business Cycle Phases" in the textbook.

AACSB: Analytic
Blooms: Remember
Colander - Chapter 06 #66
Difficulty: 1 Easy
Learning Objective: 06-03 Distinguish a business cycle from structural stagnatio
n.
Topic: Business Cycles
Question 9
0 out of 1 points
Incorrect
Frictional unemployment is a result of:
Selected Answer:
people losing a job when their skills become obsolete due to technological innov
ations.
Response Feedback:
See the definition of frictional unemployment in the textbook.

AACSB: Analytic
Blooms: Remember
Colander - Chapter 06 #88
Difficulty: 2 Medium
Learning Objective: 06-04 Relate unemployment to business cycles and distinguish
cyclical unemployment from structural unemployment.
Topic: Unemployment
Question 10
0 out of 1 points
Incorrect
The target rate of unemployment can be affected by all of the following except t
he:
Selected Answer:
population's age structure.
Response Feedback:
The level of output affects the amount of cyclical unemployment but does not aff
ect the natural rate of unemployment.

AACSB: Analytic
Blooms: Remember
Colander - Chapter 06 #97
Difficulty: 3 Hard
Learning Objective: 06-04 Relate unemployment to business cycles and distinguish
cyclical unemployment from structural unemployment.
Topic: Unemployment
o Money performs three functions: it is a medium of exchange, it is a stor
e of value, and it is a standard value (or unit of exchange).