Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN: 9781337091985
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 18, Problem 3CQQ
To determine
Argument against setting policy by discretion.
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Analysis of the Great Depression indicates that
a. even though monetary and fiscal policies were highly expansionary, they were unable to offset the economic downturn.
b. the depth of the economic plunge, if not its onset, was the result of monetary, fiscal, and regulatory policies.
c. a reduction in tax rates could not prevent the economic downturn from spiraling into a depression.
d. even though monetary policy was expansionary, restrictive fiscal policy dominated during the 1930s.
0000
Economists predict the business cycle well enough that stabilization policy is likely to work despite lags in the effects of policy.
a.true
b.false
How do fiscal and monetary policies compare in terms of timing?
a. Decision and implementation of monetary policy are comparatively slow, but its effects occur relatively quickly.
b. Decision of fiscal policy is quick comparatively slow, but its implementation and effects occur rather slowly.
c. Decision and implementation of fiscal policy are comparatively slow, but its effects occur relatively quickly.
d. The decision, implementation and effects steps of monetary policy are always quicker than those of fiscal policy.
Chapter 18 Solutions
Brief Principles of Macroeconomics (MindTap Course List)
Ch. 18.1 - Prob. 1QQCh. 18.2 - Prob. 2QQCh. 18.3 - Prob. 3QQCh. 18.4 - Prob. 4QQCh. 18.5 - Prob. 5QQCh. 18.6 - Prob. 6QQCh. 18 - Prob. 1CQQCh. 18 - Prob. 2CQQCh. 18 - Prob. 3CQQCh. 18 - Prob. 4CQQ
Ch. 18 - Prob. 5CQQCh. 18 - Prob. 6CQQCh. 18 - Prob. 1QRCh. 18 - Prob. 2QRCh. 18 - Prob. 3QRCh. 18 - Prob. 4QRCh. 18 - Prob. 5QRCh. 18 - Prob. 6QRCh. 18 - Prob. 7QRCh. 18 - Prob. 8QRCh. 18 - Prob. 9QRCh. 18 - Prob. 10QRCh. 18 - Prob. 1PACh. 18 - Prob. 2PACh. 18 - Prob. 3PACh. 18 - Prob. 4PACh. 18 - Prob. 5PACh. 18 - Prob. 6PACh. 18 - Prob. 7PACh. 18 - Prob. 8PA
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