If the economy is in a boom, the implementation lag is generally shorter for fiscal policy than for monetary policy, but if the economy is in a slump, the implementation lag is generally shorter for monetary policy than for fiscal policy.
Answer the following statement true (T) or false (F)
False
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In the Keynesian model in the long run, an increase in the money supply will cause
A) an increase in output and a decrease in the real interest rate. B) a decrease in the real interest rate but no change in output. C) an increase in the real interest rate and an increase in output. D) no change in either the real interest rate or output.
Three economic questions must be determined in all societies. What are they? a. How much will be produced? When will it be produced? How much will it cost?
b. What will the price of each good be? Who will produce each good? Who will consume each good? c. What is the opportunity cost of production? Does the society have a comparative advantage in production? Will consumers desire the goods being produced? d. What goods will be produced? How will goods be produced? Who will get the goods produced?
The curve that shows the quantity of goods and services that firms produce and sell
a. as it relates to the quantity of goods and services that buyers want to buy is called the aggregate-demand curve. b. as it relates to the quantity of goods and services that buyers want to buy is called the aggregate-supply curve. c. as it relates to the overall price level is called the aggregate-demand curve. d. as it relates to the overall price level is called the aggregate-supply curve.
When workers subdivide the tasks of a job in such a way so as to become more efficient, economists refer to this as
A. the degrees of freedom. B. the division of tasks. C. the division of labor. D. the separation of powers.