Exam 16: Theory and Reality

Which of the following is not true about macroeconomic models?

A cartoon in the text shows a man reading a newspaper.He says to another man "Which economist should we listen to today?" The cartoon depicts the concept that:

Which of the following is true about the U.S.economy during the 1990s?

Refer to Figure 16.1. -Refer to Figure 16.1.A shift from AS₂ to AS₁ could be caused by:

Supply-side policy is designed to shift the production possibilities curve:

Which of the following supports the argument for hands-on policy?

A Keynesian cure for inflation might include:

Ceteris paribus,a natural disaster such as a hurricane that disrupts the supply of oil in a country is likely to cause a:

Table 16.1 - Obstacles to the success of economic policy -The House and the Senate have proposed two different versions of a bill to cut taxes,so it takes a long time to pass the bill.(Choose from Table 16.1)

Discretionary fiscal policy includes:

The use of money and credit controls to influence macroeconomic activity is:

The lags involved in putting a new policy into place and then waiting for the policy to take effect are an example of:

Unemployment because of a mismatch between the skills of job seekers and the requirements of available jobs is called:

Which of the following would address inflation by reducing government regulation and encouraging more immigration?

The tools of monetary policy include changes in:

Macroeconomic forecasts from different computer models are usually surprisingly similar because the models are based on the same macroeconomic theories.

The United States missed its goals for unemployment,inflation and growth during the:

Which of the following are used as policy tools?

The fact that inflation and unemployment may be fairly critical before anyone notices is an example of:

Assume the economy is in a recession.Ceteris paribus,as the economy begins to expand,automatic stabilizers cause: