ECO 561 Course Great Wisdom / tutorialrank.com ECO 561 Course Great Wisdom / tutorialrank.com | Page 17

29) The industries or sectors of the economy in which business cycle
fluctuations
tend to affect output the most are: A. military goods and capital
goods. B. capital
goods and durable consumer goods. C. services and nondurable
consumer goods.
D. clothing and education.
30) Inflation is undesirable because it: A. arbitrarily redistributes real
income
and wealth. B. reduces everyone's standard of living. C. invariably
leads to
hyperinflation. D. usually is accompanied by declining real GDP.
31) Kara voluntarily quit her job as an insurance agent to return to
school full-time
to earn an MBA degree. With degree in hand she is now searching for
a position in
management. Kara presently is: A. cyclically unemployed. B. not a
member of the
labor force. C. structurally unemployed. D. frictionally unemployed.
32) Expansionary fiscal policy is so named because it: A. involves an
expansion of
the nation's money supply. B. is designed to expand real GDP. C.
necessarily