Exam 16: Theory and Reality

According to ______,a policy of patience is appropriate during a recession.

A decrease in government expenditure shifts the aggregate:

According to modern Keynesians,which of the following is an appropriate policy during a recession?

Discuss the policy tools that economic policy makers have available to use.Define the policy type and the tools associated with the policy.

Which of the following is consistent with the argument for hands-off policy?

The case against discretionary economic policy is based on the errors made in the past.

Which of the following groups would advocate raising taxes to address inflation?

Which of the following would advocate increasing government spending on welfare programs during a recession?

Which of the following is true about the U.S.economy in general?

The decision about whether to provide aid to foreign countries or increase expenditures for the elderly in this country is an example of:

Which of the following is a mechanism Keynes advocated for dealing with a recession?

During a recession,monetarists suggest increasing the money supply to stimulate the economy.

Table 16.1 - Obstacles to the success of economic policy -Both the Congressional Budget Office and the Office of Management and Budget have had a poor track record in forecasting the deficits and the GDP.(Choose from Table 16.1)

Fiscal policy includes:

An increase in government regulation is a tool most likely to be advocated by monetarists.

Measurement problems can mean that it's difficult to get reliable data about the economy.

A decrease in marginal tax rates can best be characterized as:

Ceteris paribus,when income increases,federal tax revenues:

In terms of unemployment,the U.S.economy performed the best from:

If a president promises to increase spending,cut taxes and reduce the budget deficit,this is an example of: