Keynesians: O a. accept the fact that policymakers should eliminate inflation first before focusing on unemployment. O b. focus on increasing aggregate demand in order to stimulate the economy. O c. believe that the level of aggregate demand in the 1930s was sufficient to generate full employment. d. accept the countercyclical policy of doing nothing, that is, allowing market forces to work.

In the Keynesian business cycle theory, business cycles begin with changes in Select one: O a. the public's expectations about Fed policies. O b. inflation expectations. c. business confidence. O d. consumer sentiment. Clear my choice

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Investment tax credits are intended to productivity, shifting the curve to the a. increase; long-run aggregate supply; right O b. increase; long-run aggregate supply; left ○ c. increase; aggregate demand; left O d. decrease; long-run aggregate supply; left

Assume the following macroeconomic conditions in the United States and that US policy makers desire to achieve their three macro-policy goals defined in the usual way. A. Output has risen above potential output, creating a large positive output gap. B. The employment rate has risen, creating an unemployment rate of 3%. C. The inflation rate has risen to 8% per year. Which statement is CORRECT? O Output is too high; the unemployment rate is too low; and the inflation rate is too high. Output is too high; the employment rate is too low; and the inflation rate is too low. Output is too high; the employment rate is too low; and the inflation rate is too high. Output is too low; the unemployment rate is too low; and the inflation rate is too high. Output is too high; the unemployment rate is too low; and inflation rate is too low.

What type of macroeconomics presents the view that the market economy works well, that aggregate fluctuations are a natural consequence of an expanding economy, and that government intervention cannot improve the efficiency of the market economy? macroeconomics is the view that the market economy works well, that aggregate fluctuations are a natural consequence of an expanding economy, and that government intervention cannot improve the efficiency of the market economy. O A. Monetarist B. Classical OC. Keynesian O D. Long-run Classical macroeconomics A. is currently championed by Paul Krugman in his weekly column in the New York Times B. had its beginnings with the 1936 publication The General Theory of Employment, Interest, and Money C. explains how the economy performs in the face of a major slump in spending D. fell into disrepute during the Great Depression Click to select your answer. MacBook Air DII DD 000 F11 F12 F7 F8 F9 F10 esc F4 F5 F6 F1 F2 F3 & ! @ # $ 5 7 8 delete 1 2 3 {…

An economic expansion rather than a recession occurs Select one: O a. when growth in real GDP is positive. O b. when the unemployment rate falls below 5 percent. O c when the federal budget is balanced. O d. when the unemployment rate is not changing.

Inflation-rate targeting by an independent central bank O A. feeds inflation expectations. O B. helps price signals work. O C. results in confusing price signals. O D. favours a hands - on emphasis on government discretion.

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