(47). If the federal budget were balanced annually O. monetary policy would become the chief tool for achieving economic stability O. the money rule could not be implemented O. business cycles would be virtually eliminated O. fiscal policy would become the chief tool for achieving economic stability (52). Listen Keynes believed that the money supply played a minor role, if any, in causing changes in the business cycles. O. True O.False

(47). If the federal budget were balanced annually O. monetary policy would become the chief tool for achieving economic stability O. the money rule could not be implemented O. business cycles would be virtually eliminated O. fiscal policy would become the chief tool for achieving economic stability (52). Listen Keynes believed that the money supply played a minor role, if any, in causing changes in the business cycles. O. True O.False

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter24: The Aggregate Demand/aggregate Supply Model

Section: Chapter Questions

Problem 19RQ: Does Says law apply more accurately in the long run or the short run? What about Keynes law?

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30. Increasing the debt ceiling is tied to the increase in the CPI. must be approved by Congress. must be approved by the Federal Reserve Bank. would have been opposed by John Maynard Keynes since his most important policy а. b. с. d. recommendation was to balance the budget. both b) and d) are correct] е.
(52). Listen Keynes believed that the money supply played a minor role, if any, in causing changes in the business cycles. O. True O. False
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Should policymakers use monetary policy, fiscal policy, or both in an effort to stabilize the economy? The following questions address the issue of how monetary and fiscal policies affect the economy and the pros and cons of using these tools to lessen economic fluctuations. NOTE: make sure to ADJUST GRAPH to the proper formatiom! NOTE: options for blanks 1. According to the graph, this economy is in ______ (a recession OR an expansion) 2. natural rate of output, the government could use ______ (an expansionary OR a contractionary) monetary policy such as _____ (decreasing taxes OR increasing taxes) 3. __________(leave the economy unchanged OR increase the long run capacoty to produce goods and services OR push the economy beyond the natural rate of output OR fall short of the natural rate of output) once the effects of the policy are fully realized.
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