Question 1

When making a case against active stabilization policies, what do some economists argue?

Accepted Answer

A)  Monetary policy should not be used to stabilize the economy. 
B)  Policy instruments cannot be used to achieve long-term goals. 
C)  Fiscal policies are theoretically invalid as instruments for stabilizing the economy. 
D)  The impact of policies does not last long enough for the problem to be solved. 
A)  Monetary policy should not be used to stabilize the economy. 
B)  Policy instruments cannot be used to achieve long-term goals. 
C)  Fiscal policies are theoretically invalid as instruments for stabilizing the economy. 
D)  The impact of policies does not last long enough for the problem to be solved.

Question 2

A decrease in government spending initially and primarily shifts which curve in what direction?

Accepted Answer

A)  aggregate demand right 
B)  aggregate demand left 
C)  aggregate supply right 
D)  aggregate supply left 
A)  aggregate demand right 
B)  aggregate demand left 
C)  aggregate supply right 
D)  aggregate supply left

Question 3

What is the most likely effect of an increase in government spending on goods to build or repair infrastructure?

Accepted Answer

A)  It would shift the aggregate-demand curve to the left. 
B)  It would shift the long-run aggregate-supply curve to the left. 
C)  It would shift the short-run aggregate-supply curve to the left. 
D)  It would shift the long run aggregate-supply curve to the right. 
A)  It would shift the aggregate-demand curve to the left. 
B)  It would shift the long-run aggregate-supply curve to the left. 
C)  It would shift the short-run aggregate-supply curve to the left. 
D)  It would shift the long run aggregate-supply curve to the right.

When making a case against active stabilization policies, what do some economists argue?

A decrease in government spending initially and primarily shifts which curve in what direction?

What is the most likely effect of an increase in government spending on goods to build or repair infrastructure?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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Exam 15: The Influence of Monetary and Fiscal Policy on Aggregate Demand

When making a case against active stabilization policies, what do some economists argue?

A decrease in government spending initially and primarily shifts which curve in what direction?

What is the most likely effect of an increase in government spending on goods to build or repair infrastructure?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

Filters