Exam 17: Macroeconomics: Events and Ideas

The main reason that the Great Depression ended was:

New classical economics:

Prior to the Great Depression,many policymakers:

Which school of thought believes that expansionary monetary policy has very little or no effect on output? I.Keynesian macroeconomics II.Great Moderation consensus

Reduction of interest rates was ineffective in fighting the Great Recession because:

Rational expectations theory asserts that because people have rational expectations,if a policy of reducing the money supply is used:

The General Theory of Employment,Interest,and Money was written by:

Keynesian economics stresses the role of:

The belief that expansionary monetary policy is NOT at all helpful to the economy in fighting recessions is attributed to:

A fundamental feature of early classical macroeconomics is that:

The recommendation that the government should avoid deficit spending because of the crowding-out effect on investment spending is consistent with _____ macroeconomics.

Friedman and Schwartz's work A Monetary History of the United States,1867-1960 showed that the business cycle historically was associated with fluctuations in:

The slump that followed the 2008 financial crisis is called the Great Modernization.

Use the following to answer questions: -(Figure: Fiscal Policy and the End of the Great Depression)Refer to Figure: Fiscal Policy and the End of the Great Depression.The period from 1939 to 1943 would seem to indicate that in the short run a large increase in government deficit spending can _____ the unemployment rate.

Monetarists argue that:

_____ macroeconomists focused on the _____ effects of _____ policy on the aggregate price level,ignoring any _____ effects on aggregate output.

Keynes's ideas were:

Discretionary fiscal policy:

In the 1970s and first half of the 1980s,the Canadian economy had _____ inflation and _____ unemployment.

The central bank moved away from a monetary growth rule because _____ was/were unstable.