Question 1

An advantage of discretionary policy might be that ________.

Accepted Answer

A)  it has been shown to be more efficient than rules 
B)  it is more flexible than rules 
C)  it requires a binding plan in advance to deal with economic problems 
D)  all of the above 
E)  none of the above 
A)  it has been shown to be more efficient than rules 
B)  it is more flexible than rules 
C)  it requires a binding plan in advance to deal with economic problems 
D)  all of the above 
E)  none of the above

Question 2

Why might most people, as in the United States, save less than is good for themselves and for the economy as a whole? How might policymakers encourage more saving?

Accepted Answer

The saving rate is determined by incenti

Question 3

Policies to encourage higher personal saving rates include ________.

Accepted Answer

A)  raising income taxes 
B)  raising sales taxes 
C)  lowering taxes on pension plans 
D)  A and B but not C 
E)  B and C but not A 
A)  raising income taxes 
B)  raising sales taxes 
C)  lowering taxes on pension plans 
D)  A and B but not C 
E)  B and C but not A

Question 4

The Federal Reserve ________.

Accepted Answer

A)  engages in stabilization policy by setting interest rates 
B)  engages in fiscal policy by setting interest rates 
C)  addresses financial crises by raising taxes 
D)  all of the above 
E)  none of the above 
A)  engages in stabilization policy by setting interest rates 
B)  engages in fiscal policy by setting interest rates 
C)  addresses financial crises by raising taxes 
D)  all of the above 
E)  none of the above

Question 5

Real GDP measures ________.

Accepted Answer

A)  the total hours the average U.S. citizen works a year 
B)  the percentage of income produced by workers and firms 
C)  how slowly interest rates grow. 
D)  the total market value of actual goods and services produced in an economy over a year 
E)  how rapidly the overall level of prices is rising. 
A)  the total hours the average U.S. citizen works a year 
B)  the percentage of income produced by workers and firms 
C)  how slowly interest rates grow. 
D)  the total market value of actual goods and services produced in an economy over a year 
E)  how rapidly the overall level of prices is rising.

An advantage of discretionary policy might be that ________.

Why might most people, as in the United States, save less than is good for themselves and for the economy as a whole? How might policymakers encourage more saving?

Policies to encourage higher personal saving rates include ________.

The Federal Reserve ________.

Real GDP measures ________.

Measuring Macroeconomic Data

Aggregate Production and Productivity

Saving and Investment in Closed and Open Economies

Money and Inflation

The Sources of Growth and the Solow Model

Drivers of Growth: Technology, Policy, and Institutions

Business Cycles: an Introduction

The Is Curve

Monetary Policy and Aggregate Demand

Aggregate Supply and the Phillips Curve

The Aggregate Demand and Supply Model

Macroeconomic Policy and Aggregate Demand and Supply Analysis

The Financial System and Economic Growth

Financial Crises and the Economy

Fiscal Policy and the Government Budget

Exchange Rates and International Economic Policy

Consumption and Saving

Investment

The Labor Market, Employment, and Unemployment

The Role of Expectations in Macroeconomic Policy

Modern Business Cycle Theory

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Exam 1: The Policy and Practice of Macroeconomics

An advantage of discretionary policy might be that ________.

Why might most people, as in the United States, save less than is good for themselves and for the economy as a whole? How might policymakers encourage more saving?

Policies to encourage higher personal saving rates include ________.

The Federal Reserve ________.

Real GDP measures ________.

Measuring Macroeconomic Data

Aggregate Production and Productivity

Saving and Investment in Closed and Open Economies

Money and Inflation

The Sources of Growth and the Solow Model

Drivers of Growth: Technology, Policy, and Institutions

Business Cycles: an Introduction

The Is Curve

Monetary Policy and Aggregate Demand

Aggregate Supply and the Phillips Curve

The Aggregate Demand and Supply Model

Macroeconomic Policy and Aggregate Demand and Supply Analysis

The Financial System and Economic Growth

Financial Crises and the Economy

Fiscal Policy and the Government Budget

Exchange Rates and International Economic Policy

Consumption and Saving

Investment

The Labor Market, Employment, and Unemployment

The Role of Expectations in Macroeconomic Policy

Modern Business Cycle Theory

Filters