61.TherelativelylowinflationexperiencedintheUnitedStatesinthe1990sisattributableto a.slowgrowthofU.S.productivityduringthe1990s. b.slowgrowthofthequantityofmoneyintheU.S.inthe1990s. c.lowlevelsofgovernmentspendingintheU.S.inthe1980sand1990s. d.theeight-yearpresidencyofWilliamJeffersonClintonduringthe1990s. 62.Duringthe1990s,theUnitedKingdomexperiencedlowlevelsofinflationwhileTurkeyexperiencedhighlevelsofinflation.Alikelyexplanationofthesefactsisthat a.theUnitedKingdomhasabettereducationsystemthanTurkey. b.therateofgrowthofthequantityofmoneywasslowerintheUnitedKingdomthaninTurkey. c.workersinTurkeyaremoreproductivethanworkersintheUnitedKingdom. d.therearemoreinstancesofmarketpowerinTurkeythanintheUnitedKingdom. 63.Thetradeoffbetweeninflationandunemployment a.impliesthatpoliciesdesignedtoreduceunemploymentalsoreduceinflation. b.waseliminatedbyimprovedeconomicpoliciesinthe1900s. c.isalong-runtradeoff,persistingfordecades,accordingtomosteconomists. d.Noneoftheabovearecorrect. 64.Germanycouldhaveavoidedthehighinflationthatitexperiencedinthe1920sby a.notdirectingsomanyofitsresourcestowardpreparationforWorldWarII. b.notincreasingtaxessomuchontheGermanmiddleclass. c.notallowingthequantityofmoneytoincreasesorapidly. d.usinggovernmentpoliciestostimulatetheeconomymoresothanwhatwasdone. 65.Intheshortrun,whichofthefollowingisnotcorrect? a.Increasingthemoneysupplyincreasesthedemandforgoodsandservices. b.Increasingthemoneysupplyencouragesfirmstohiremoreworkers. c.Loweringthemoneysupplyleadstoahigherlevelofunemployment. d.Policiesthatencouragehigheremploymentwillalsoinducealowerrateofinflation. 66.InresponsetothedeepeconomicdownturnintheUSin2008and2009,theUS a.reducedtaxes. b.increasedgovernmentspending. c.increasedthesupplyofmoney. d.Alloftheabovearecorrect. 67.ThecombinationofPresidentObama’sstrategiesandtheFederalReserve’sreactiontothedeepeconomicdownturnintheUSin2008and2009 a.intendedtoreduceunemployment. b.mayleadtoexcessiveinflationovertime. c.resultedinhighertaxesandanincreasedsupplyofmoney. d.Bothaandbarecorrect. 68.Theshort-runtradeoffbetweeninflationandunemploymentimpliesthat,intheshortrun, a.adecreaseinthegrowthrateofthequantityofmoneywillbeaccompaniedbyanincreaseintheunemploymentrate. b.anincreaseinthegrowthrateofthequantityofmoneywillbeaccompaniedbyanincreaseintheunemploymentrate. c.policymakersareabletoreducetheinflationrateand,atthesametime,reducetheunemploymentrate. d.policymakerscaninfluencetheinflationrate,butnottheunemploymentrate. 69.Theirregularandlargelyunpredictablefluctuationsineconomicactivityarecalled a.marketfailure. b.businesscycle. c.inflation. d.unemployment. 70.Thebusinesscycleisthe a.relationshipbetweenunemploymentandinflation. b.irregularfluctuationsineconomicactivity. c.positiverelationshipbetweenthequantityofmoneyinaneconomyandinflation. d.predictablechangesineconomicactivityduetochangesingovernmentspendingandtaxes.