Exam 17: Macroeconomics: Events and Ideas

Since 2012,Japan has _____ government spending and _____ monetary expansion,resulting in ____ growth.

One argument in favour of quantitative easing is that:

Milton Friedman was a leader and major proponent of:

The natural rate hypothesis:

The monetary policy in which the central bank purchased assets other than short-term government securities is called:

Keynes's theory did not endorse the use of monetary policy during the Great Depression because:

Many economists favoured using discretionary fiscal policy during the Great Recession because monetary policy could not be used when interest rates were near zero.

Most economists believe that the budget should not be balanced annually but should be allowed to function as an automatic stabilizer.

The groundbreaking book The General Theory of Employment,Money,and Interest was written by famed economist:

Nearly all economists agree that increases in government spending can _____ aggregate _____.

The classical macroeconomists believed that fiscal policy was even less effective than monetary policy.

The Great Moderation consensus among macroeconomists is that fiscal policy should be used sparingly because:

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

During the Great Recession,policymakers were not as worried as usual about the lags associated with discretionary fiscal policy because:

According to the theory of rational expectations,individuals will respond to expansionary monetary policy by predicting:

Monetarism asserts that GDP will grow steadily if the:

Keynes believed that "animal spirits," or confidence levels,had their greatest impact on:

According to Keynesian theory:

Supply-side economics is the belief that tax cuts can be used to stimulate long-run economic growth.

The Great Moderation consensus is that discretionary fiscal policy can be destabilizing because of the political business cycle.