Under fiscal stabilization policy in the New Keynesian model, after a negative shock to output,
A) the government increases expenditures and the central bank increases the money supply.
B) the government increases expenditures and the central bank decreases the money supply.
C) the government decreases expenditures and the central bank increases the money supply.
D) the government decreases expenditures and the central bank decreases the money supply.
A
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A price ceiling, such as a rent ceiling
A) always results in a surplus. B) always results in a shortage. C) results in a surplus if the ceiling price is less than the equilibrium price. D) results in a shortage if the ceiling price is less than the equilibrium price.
When a one-percent change in price is accompanied by a larger percent change in quantity demanded,
a. demand is inelastic b. supply is elastic c. the good is a normal good d. the good is an inferior good e. demand is elastic
Refer to the above table. Amy's utility schedule shows
A. initially decreasing marginal utility and then increasing marginal utility. B. diminishing marginal utility throughout her entire schedule. C. increasing marginal utility throughout her entire schedule. D. initially increasing marginal utility and then decreasing marginal utility.
The so-called collective action problem refers to the:
A. Problems faced by organizers in setting up a labor union B. Challenges faced by business when they have to deal with a labor union C. Inability of the government to discern the true preferences of everyone in society D. Greater difficulty in organizing and motivating large groups than small ones