Question 1

What is the most likely effect of an increase in government spending on goods to build or repair infrastructure?

Accepted Answer

A)   It would shift the aggregate-demand curve to the left.
B)   It would shift the long-run aggregate-supply curve to the left.
C)   It would shift the short-run aggregate-supply curve to the left.
D)   It would shift the long run aggregate-supply curve to the right.E) C) and D)
F) A) and B)

Question 2

When making a case against active stabilization policies, what do some economists argue?

Accepted Answer

A)   Monetary policy should not be used to stabilize the economy.
B)   Policy instruments cannot be used to achieve long-term goals.
C)   Fiscal policies are theoretically invalid as instruments for stabilizing the economy.
D)   The impact of policies does not last long enough for the problem to be solved.E) A) and B)
F) C) and D)

Question 3

A decrease in government spending initially and primarily shifts which curve in what direction?

Accepted Answer

A)   aggregate demand right
B)   aggregate demand left
C)   aggregate supply right
D)   aggregate supply leftE) A) and D)
F) B) and D)

Exam 15: The Influence of Monetary and Fiscal Policy on Aggregate Demand

When making a case against active stabilization policies, what do some economists argue?

Correct Answer
verified

What is the most likely effect of an increase in government spending on goods to build or repair infrastructure?

Correct Answer
verified

A decrease in government spending initially and primarily shifts which curve in what direction?

Correct Answer
verified

Exam 15: The Influence of Monetary and Fiscal Policy on Aggregate Demand

When making a case against active stabilization policies, what do some economists argue?

Correct AnswerverifiedShow Answer

What is the most likely effect of an increase in government spending on goods to build or repair infrastructure?

Correct AnswerverifiedShow Answer

A decrease in government spending initially and primarily shifts which curve in what direction?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified