AP (Advanced Placement) Macroeconomics: Questions 508 - 512 of 750

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Question 508

Question

MCQ▾

What are the values of multiplier (k) and accelerator (β) when the economy follows an explosive cycle path in Samuelson՚s model of business cycle?

Choices

Choice (5)Response

a.

b.

c.

d.

e.

Question does not provide sufficient data or is vague

Question 509

Question

MCQ▾

The Gold Standard System was completely withdrawn in which year?

Choices

Choice (5)Response

a.

1979

b.

1933

c.

1971

d.

1944

e.

None of the above

Question 510

Question

MCQ▾

What is Lucas՚s paradox?

Choices

Choice (5)Response

a.

Inefficient allocation of international capital flows

b.

Slow labour movement from labour abundant to labour scarce countries

c.

High growth rates in countries with low per capita income

d.

All of the above

e.

Question does not provide sufficient data or is vague

Question 511

Question

MCQ▾

Match the mathematical representation of increasing returns to sale

Choices

Choice (5)Response

a.

b.

c.

d.

None of the above

e.

Question does not provide sufficient data or is vague

Question 512

Question

MCQ▾

How does Slutsky substitution effect differ from Hicks substitution effect (SE) ?

i. The original bundle will no longer be affordable but the consumer will move along the same indifference curve in the Hicks SE

ii. Slutsky SE holds purchasing power constant while Hicks SE holds utility constant

iii. In the Hicks SE, consumer moves to a higher IC while the new budget line passes through the original bundle

iv. Slutsky demand curve is also called compensated demand curve as the consumer is “compensated” for changes in relative price by keeping purchasing power unchanged

Choices

Choice (5)Response

a.

i and iv

b.

iii and ii

c.

iii and iv

d.

i and ii

e.

Question does not provide sufficient data or is vague

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