Exam 17: Macro Policy Debate: Active or Passive

The early Phillips curve showed a tradeoff between unemployment and inflation because it was drawn for a period in which the main source of instability was aggregate demand.

(True/False)

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Question 21

The main policy conclusion of the rational expectations school is

(Multiple Choice)

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Question 22

If the economy were in a recession,which of the following policies would a person who favors an active approach to policy be most likely to support?

(Multiple Choice)

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Question 23

In the early 1960s,the discovery of the Phillips curve relationship caused economists and policy makers to think that they understood the tradeoffs between

(Multiple Choice)

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Question 24

According to the natural rate hypothesis,unemployment can

(Multiple Choice)

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Question 25

An important implication of the natural rate hypothesis is that regardless of concerns about ,the government policy that results in is generally the optimal long-run policy.

(Multiple Choice)

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Question 26

Evidence indicates that inflation rates are

(Multiple Choice)

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Question 27

Time required __________ is not a time lag associated with using discretionary policy to correct an economic problem.

(Multiple Choice)

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Question 28

Which of the following statements supports the passive approach to a recessionary gap?

(Multiple Choice)

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Question 29

If the advice of those who favor a passive approach to policy is correct,how would a recessionary gap eventually close?

(Multiple Choice)

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Question 30

The long-run Phillips curve

(Multiple Choice)

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Question 31

According to the rational expectations school,a correctly anticipated expansionary monetary policy will

(Multiple Choice)

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Question 32

If the time for an economy to self-correct is shorter than the active policy lags,

(Multiple Choice)

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Question 33

The average U.S.recession (after World War II)has lasted

(Multiple Choice)

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Question 34

The natural rate hypothesis claims that policy makers can have considerable success in reducing unemployment through monetary and fiscal policy.

(True/False)

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Question 35

Exhibit 16-3 -According to those who favor a passive approach to policy,where will the economy in Exhibit 16-3 end up once the expansionary gap is eliminated?

(Multiple Choice)

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Question 36

Suppose that policy makers are concerned about a shortage of long-term capital investment.To remedy the problem,various plans to cut capital gains taxes have been suggested.The delay in picking a plan is called the

(Multiple Choice)

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Question 37

Exhibit 16-1 -According to those who favor an active approach to policy,how can the economy shown in Exhibit 16-1 attain equilibrium at potential output?

(Multiple Choice)

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Question 38

Some of those who favor a passive approach to policy disapprove of government intervention in the economy because they think government policy makers do not know which policy is correct.

(True/False)

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Question 39

Which of the following is not a potential problem with active policy for policy makers?

(Multiple Choice)

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Question 40

Showing 21 - 40 of 198

Exam 17: Macro Policy Debate: Active or Passive

The early Phillips curve showed a tradeoff between unemployment and inflation because it was drawn for a period in which the main source of instability was aggregate demand.

The main policy conclusion of the rational expectations school is

If the economy were in a recession,which of the following policies would a person who favors an active approach to policy be most likely to support?

In the early 1960s,the discovery of the Phillips curve relationship caused economists and policy makers to think that they understood the tradeoffs between

According to the natural rate hypothesis,unemployment can

An important implication of the natural rate hypothesis is that regardless of concerns about __________,the government policy that results in __________ is generally the optimal long-run policy.

Evidence indicates that inflation rates are

Time required __________ is not a time lag associated with using discretionary policy to correct an economic problem.

Which of the following statements supports the passive approach to a recessionary gap?

If the advice of those who favor a passive approach to policy is correct,how would a recessionary gap eventually close?

The long-run Phillips curve

According to the rational expectations school,a correctly anticipated expansionary monetary policy will

If the time for an economy to self-correct is shorter than the active policy lags,

The average U.S.recession (after World War II)has lasted

The natural rate hypothesis claims that policy makers can have considerable success in reducing unemployment through monetary and fiscal policy.

Exhibit 16-3 -According to those who favor a passive approach to policy,where will the economy in Exhibit 16-3 end up once the expansionary gap is eliminated?

Suppose that policy makers are concerned about a shortage of long-term capital investment.To remedy the problem,various plans to cut capital gains taxes have been suggested.The delay in picking a plan is called the

Exhibit 16-1 -According to those who favor an active approach to policy,how can the economy shown in Exhibit 16-1 attain equilibrium at potential output?

Some of those who favor a passive approach to policy disapprove of government intervention in the economy because they think government policy makers do not know which policy is correct.

Which of the following is not a potential problem with active policy for policy makers?

The Art and Science of Economic Analysis

Economic Tools and Economics Systems

Economic Decision Makers

Demand, supply, and Markets

Introduction to Macroeconomics

Tracking the Useconomy

Unemployment and Inflation

Productivity and Growth

Aaggregate Expenditure and Aggregate Demand

Baggregate Expenditure and Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

International Trade

Externalities and the Environment

International Finance

Economic Development

understanding Graphs

National Income Accounts

The Algebra of Demand-Side Equilibrium

Filters

An important implication of the natural rate hypothesis is that regardless of concerns about ,the government policy that results in is generally the optimal long-run policy.