Exam 17: Issues in Macroeconomic Theory and Policy

According to the rational expectation view, the government can change real output:

A larger crowding-out effect:

An increase in government purchases or a decrease in taxes, other things being equal, will tend to:

Which of the following was not a reason for the significant decline in housing prices in 2007?

Which of the following believe that discretionary monetary policy and discretionary fiscal policy are effective countercyclical policy actions?

If a foreign trading partner of the United States decreases its budget deficit, decreasing interest rates in that country:

A main argument against indexing is that:

A larger crowding-out effect:

A larger crowding-out effect:

If expectations are rational, how can government influence unemployment in a predictable way?

Due to crowding-out effects, other things being equal:

If the shifts in AD that will result from policy changes are fully and accurately anticipated, an increase in government purchases or a decrease in taxes would result in which of the following in the short run?

Which of the following is true?

A smaller crowding-out effect:

Figure 17-A -Why does a larger government budget deficit increase the magnitude of the crowding-out effect?

With rational expectations, a policy that would increase AD would lead to:

The time span between the beginning of a downturn and the time by which hard data to indicate a downturn is made available is called:

Which of the following was not a reason for the financial collapse in 2008?

Which of the following is true?

A smaller crowding-out effect: