Multiple Choice
The idea that government budget deficits do not matter under certain circumstances is
A) called the Friedman-Lucas theory.
B) preposterous.
C) called the Ricardian equivalence theorem.
D) called the Milton Friedman theory.
E) attributed to Edward Prescott and Finn Kydland.
Correct Answer:
Verified
Correct Answer:
Verified
Q7: Long-run inflation tends to<br>A) reduce employment, output,
Q8: In free-market economies<br>A) tend to produce socially
Q9: For the study of economic growth,it is
Q10: Two plausible hypothesis to explain the productivity
Q11: Growth in productivity slowed from the<br>A) early
Q13: When there is high inflation<br>A) interest rates
Q14: What do we assume about households and
Q15: According to Keynesian coordination failure theory,the primary
Q16: To be useful,macroeconomic models<br>A) must be complete,
Q17: Countries gain from<br>A) trading goods and assets