Exam 23: Six Debates Over Macroeconomic Policy: Should Monetary and Fiscal Policymakers Try to Stabilize the Economy

President Barrack Obama and Congress cut taxes and raised government expenditures during the 2008 financial crisis.According to the aggregate supply and aggregate demand,model which of these policies would tend to reduce unemployment?

Opponents of using policy to stabilize the economy generally believe that

If aggregate demand shifts right and the President and Congress want to use fiscal policy to reverse the change in output,they could

If aggregate demand shifts because of a wave of pessimism about stock prices,those who favor a policy that "leans against the wind" would advocate the

If the unemployment rate rises,which policies would both be appropriate to reduce it?

The Federal Reserve

If the unemployment rate rises,which policies would be appropriate to reduce it?

The principal reason that monetary policy has lags is that it takes a long time for

Those who desire that policymakers stabilize the economy would advocate which of the following when aggregate demand is insufficient to ensure full employment?

When aggregate demand is too low to ensure full employment,those in favor of using monetary and fiscal policy to stabilize the economy might recommend

The economy goes into recession.Which of the following lists contains things policymakers could do to try to end the recession?

Which of the following likely occurs when households and firms become more pessimistic?

Suppose there is a decrease in aggregate demand.If the Fed wants to stabilize output it could

Which of the following likely occurs when households and firms become more pessimistic?

Which of the following should be kept in mind when policymakers consider efforts to stabilize the economy?

The principal lag for monetary policy

Part of the lag in monetary policy effects is due to

In general,the longest lag for

When aggregate demand is high,risking higher inflation,those in favor of using monetary and fiscal policy to stabilize the economy might recommend

"Leaning against the wind" is exemplified by a(n)