Macroeconomics
10th Edition
ISBN: 9781319105990
Author: Mankiw, N. Gregory.
Publisher: Worth Publishers,
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Chapter 16, Problem 2QQ
To determine
Identify the lag.
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An increase in taxes would be a good policy
A.
when there is stagflation, as this policy would push aggregate supply to the right.
B.
during a recession, as this policy would stimulate aggregate demand.
C.
during a recession, as this policy would reduce aggregate supply.
D.
when there is inflation, as this policy would push aggregate demand to the left.
E.
when there is inflation, as this policy would push aggregate demand to the right.
QUESTION 20
An increase in the price level will
A.
shift the aggregate demand curve to the left.
B.
shift the aggregate supply curve to the left.
C.
move the economy down along a stationary aggregate supply curve.
D.
shift the aggregate demand curve to the right.
E.
move the economy up along a stationary aggregate demand curve.
When fighting a recessionary gap, central banks will
amount of loans being provided by commercial banks.
Select one:
a. Increase; decrease
b. Decrease; increase
the bank rate in order to
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.
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