Exam 9: How Has Macroeconomic Policy Changed in an Era of Uncertainty

Which three of the following are inflows to the unemployment pool?

Suppose the economy is initially operating at its potential GDP. In the Keynesian view, which two of the following will occur after the economy is hit by an adverse aggregate demand shock?

Which one of the following policy measures is not available to countries that are members of the euro area?

Which two of the following are factors affecting a country's capacity to efficiently produce goods and services in the long term?

What are the main costs associated with unemployment?

The late American economist Milton Friedman's contribution to the debate over stabilization policy may be summarized as follows: governments do not need to stabilize the economy, they cannot do so, and they should not try.

Economic growth refers to an increase in money GDP.

Why is it important to control inflation?

Which one of the following is not a measure intended to reduce the natural rate of unemployment?

The conventional objective for economic growth is best described by which one of the following?

The famous British economist John Maynard Keynes argued that the Great Depression was a result of a sharp fall in the level of investment and that unemployment reflected a state of deficient aggregate demand.

Which two of the following are characteristics of the European single market?

Macroeconomics is concerned with the study of the behaviour of individual households and firms within the economy.

Which two of the following are examples of expansionary fiscal policy?

Low and stable inflation is an important pre-condition for achieving a sustainable growth of output and employment.

In the view of Keynesian economists, when an economy settles below full employment, expansionary fiscal policy will result in:

Keynes introduced the concept of there being a natural rate of unemployment in his 1936 book, The General Theory of Employment, Interest and Money.

According to Friedman, governments need to, can, and therefore should seek to stabilize their economies through aggregate demand management.

Which two of the following are economically active individuals?

Inflation has always been a major and active concern of the world's macroeconomic policymakers.