Exam 17: Macroeconomics: Events and Ideas

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 1933 to 1936 would seem to indicate that in the short run a moderate level of government deficit spending can _____ the unemployment rate.

In A Monetary History of the United States,1867-1960,Milton Friedman and Anna Schwartz argued that:

Economists today generally believe that fiscal policy should be the primary tool for stabilizing the economy.

A very low rate of inflation during a recession can lead to:

We now typically refer to the Keynesian term "animal spirits" as:

Cutting government spending to increase private-sector confidence,leading to increases in output and employment,is called:

Opponents of quantitative easing argued that the _____ monetary policy would cause _____.

Which theory is consistent with the notion that the short-run aggregate supply curve may be vertical after all?

In the classical model of the price level,prices are _____,the short-run aggregate supply curve is vertical,and as a result,a decrease in the money supply leads to _____ in the aggregate price level.

Use the following to answer questions: -The General Theory of Employment,Interest,and Money,written by _____ and published in _____,transformed the way economists thought about macroeconomics.

The historical validation of Keynes's theory came through the:

Use the following to answer questions: -The General Theory of Employment,Interest,and Money is:

Most economists favour discretionary monetary policy because the velocity of money has been very stable since the 1980s.

Which statement is FALSE?

According to the classical model,prices are _____,making the aggregate supply curve _____ in the short run.

The slump that followed the 2008 financial crisis is called the:

Economists today generally believe that monetary policy can stabilize the economy but not reduce unemployment below its natural rate.

A hypothesis that individuals base their expectations on available information and act on that information is called the:

Milton Friedman was the leading figure in the movement called:

Fiscal policy is usually: