The occurrence of financial crowding out implies that:  Short-run fiscal expansion increases the size of the public sector Long-run growth is adversely affected by public spending Domestic banks benefit at the expense of foreign banks The long-run Phillips curve is vertical Which of the following statements are true? (A) Only Statement (1) is correct (B) Statements (1) and (3) are correct (C) Statements (1) and (2) are correct (D) Statements (2) and (4) are correct

Kindly answer A-D. Thank you.

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Which of the following is NOT a requirement in selecting a policy instrument?   Question 4 options:   a)  controllability   b)  measurability   c)  flexibility   d)  predictability

The Phillips curve is the relationship between (a) Change in GDP from potential and inflation. (b) GDP and unemployment. (c) The percent change in GDP and inflation. (d) The percent change in GDP and unemployment.

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Part a.: The Phillips curve slopes (downward/upward), since a more positive output gap is associated with a (higher/lower) level of unexpected inflation. The labor market Phillips Curve slopes (downward/upward), since a more positive output gap is associated with a (higher/lower) level of unemployment. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

6) Which of the following is a reason to support active stabilization policy? a) policy affects the economy with a lag. b) policy can offset shocks to the economy. c) policy takes time to have an impact on the economy. d) policy does not have an ability to affect unemployment. 7) An example of an automatic stabilizer is a) more people receive food stamps during a recession. b) fewer people collect unemployment benefits during an expansion. c) during a recession, people move down into lower tax brackets. d) all of the above are examples. 8) It is difficult to verify the Lucas Critique. Which of the following is a reason why? a) It is hard to identify shocks in the economy. b) It is hard to know how the economy would be different without implemented policies. c) both a) and b) are reasons. d) neither a) nor b) are reasons. 9) Which of the following is an example of the time inconsistency problem? a) monetary policy vows to fight inflation and dramatically increases the money supply. b)…

Figure 17-5 Inflation rate (percent per year) 10% 5 0 Long-run Phillips curve 5.5% 7.5 Short-run Phillips curve Unemployment rate (percent)