I need help answering these questions and a short explanation would be helpful. Thank you
1-A very low rate of inflation during a recession can lead to:
a. government budget surpluses. Incorrect
b. a liquidity trap, which makes monetary policy ineffective.
c. government budget deficits.
d. a liquidity trap, which makes monetary policy effective.
2-Christina is an economist who believes that shifts in aggregate demand cause a change in both real output and the price level. She believes that an economic recession will not necessarily self-correct in the long run, and therefore she believes that active fiscal and monetary policy is justified to smooth out the business cycle. Christina is best described as a:
a. classical economist.
b. monetarist. Incorrect
c. Keynesian economist.
d. supply-side economist.
3-Keynes believed that wages and prices were sticky. Therefore, a rightward shift of the aggregate demand curve would cause a(n):
a. decrease in the level of income. Incorrect
b. increase in the unemployment level.
c. change in the long-run aggregate supply curve.
d. increase in employment, production, and income.
4-Keynes’s theory did not endorse the use of monetary policy because:
a. monetary expansions were impossible under a gold standard.
b. under the gold standard, the zero-bound on nominal interest rates did not exist. Incorrect
c. during WW II, the convertibility of the pound sterling into gold was suspended.
d. at the time, the nominal interest rate was very close to zero.
5-Monetarists argue that:
a. fiscal policy should always be used before monetary policy. Incorrect
b. self-correction is less effective than activist monetary policy.
c. the Federal Reserve System should allow the money supply to increase at a slow, steady annual rate.
d. since the velocity of money is unstable, a fixed annual increase in the money supply will exacerbate inflation in the long run.
6-The Great Moderation consensus about macroeconomic policy is that:
a. only monetary policy works against recessions, but fiscal policy is effective only in the long run.
b. expansionary monetary and fiscal policies can both reduce unemployment in the long run. Incorrect
c. discretionary monetary and fiscal policies are effective in the short run and in the long run.
d. expansionary monetary and fiscal policies are both effective in the short run but not in the long run.
7-The Great Moderation consensus regarding the use of monetary or fiscal policy to reduce unemployment in the long run is that:
a. the only effective policy is to maintain a constant growth rate of the money supply.
b. unemployment can be constantly decreased as long as expectations of inflation are kept low. Incorrect
c. the natural rate of unemployment limits what monetary and fiscal policy can accomplish.
d. the concept of the nonaccelerating inflation rate of unemployment, or NAIRU, was a mistake.
8-The theory of rational expectations contends that policy activism is:
a. not warranted, because we don’t know enough about the workings of the economy to stabilize it.
b. warranted, because expectations are rational only in the short run. Incorrect
c. warranted, because discretionary policies have a strong effect on real output.
d. not warranted; the public defeats discretionary policies because everyone expects them and therefore their effectiveness is thwarted.
9-Which of the following does NOT represent the broad consensus among macroeconomists?
a. Discretionary fiscal policy can lower the natural rate of unemployment.
b. The central bank should be independent, insulated from political pressures, to avoid a political business cycle.
c. Monetary policy should play the main role in stabilization policy.
d. Discretionary fiscal policy should be used sparingly because of policy lags and the risks of the political business cycle. Incorrect
We value our customers and so we ensure that what we do is 100% original..
At Custom Writing, we believe in exemplary services that are fully geared toward customer satisfaction. That is why we don’t shy away from giving you the following guarantees;
Trusting us with your work is the best decision you have made, our pleasure lies in seeing you satisfied at 100%. If in the rear chance it happens that you are not satisfied, then know that we will equally not be satisfied. But worry not, our 30 days- Money back guarantee is all you need and that is what we promise you..Read more
We utilize profoundly equipped and gifted writers who produce unique papers liberated from any form of plagiarism. To guarantee this, we run all papers finished by our scholars through a Plagiarism checker to ensure uniqueness and originality. In any case, on the off chance that you have vulnerabilities about the originality or falsification of any paper we have finished and conveyed to you, please get in touch with us straight away. We will quickly investigate, and if the paper is seen as counterfeited, we will take suitable actions including but not limited to, revising the paper for free and in extreme cases we will activate the money back guarantee.Read more
We have an obligation deliver great and specially composed assignments. Our revision strategy endeavors to ensure total client satisfaction, comfort, and a genuine feelings of serenity. We make minor updates and corrections to the underlying request as part of our continuous assistance. However, revisions should just incorporate changes and alterations that were not effectively met, in the underlying request and that are inside the rules as per the current request structure..Read more
Our client's Data is an Integral part of our business but clearly, we are not in the business of offering our clients' very own data to others. We realize that you care how your online data is utilized and shared, we equally value your trust that we will do so cautiously and sensibly. We Promise to ensure the security of your own data during transmission by utilizing encryption conventions and programming. Likewise assist us with securing your information by not sharing your passwords and usernames.Read more
In submitting a request with us, you consent to the services we give. We will strive to take the necessary steps to convey a far reaching paper according to your prerequisites. Equally we depend on your cooperation to guarantee that we convey on this order.Read more