Exam 16: Theory and Reality

Which of the following will increase aggregate demand?

One News Wire article,titled "NBER Makes It Official: Recession Started in December 2007," dated December 2008,explains that the National Bureau of Economic Research waited 12 months to announce that economic activity peaked in December of 2007.Which of the following obstacles does this article address?

Policies that make good sense politically typically make good sense economically,too.

A tax cut can best be characterized as:

Discretionary fiscal policy refers to:

When the Fed raises interest rates they are attempting to:

If a fiscal stimulus package is enacted after the end of the recession it was intended to cure,this is an example of:

A government spending hike can best be characterized as:

Discuss the difference between automatic stabilizers and discretionary fiscal policies.

Even with various policy options to choose from,the U.S.economy continues to experience periods of recession,high unemployment,and inflation.

Open market operations can best be characterized as:

The idea that the recession of 2001 ended nearly two years before researchers confirmed that it had ended is an example of:

Which of the following is the appropriate order of policy responses?

According to ______,it is appropriate to reduce the money supply in order to reduce inflation.

Good economic policy and political objectives are often in conflict with each other.

The potential conflict between economic policy and political objectives can be used to explain:

The Fed uses monetary policy in an effort to change _______ and shift the aggregate _______ curve.

Which of the following will reduce the problems of high unemployment and inflation during a period of stagflation?

Which of the following is an example of supply-side policy?

Which of the following will reduce inflation and also reduce the level of output,ceteris paribus?