Critics of stabilization policy argue that
a. policy affects aggregate demand quickly, but the effects on aggregate demand are long-lived.
b. policy affects aggregate demand with a lag, and the effects on aggregate demand are long-lived.
c. policy affects aggregate demand with a lag, but the effects are short-lived.
d. policy does not affect aggregate demand.
b
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External economies of scale will ________ average cost when output is ________ by ________
A) reduce; increased; the industry B) reduce; increased; a firm C) increase; increased; a firm D) increase; increased; the industry E) reduce; reduce; the industry
The Keynesian AD curve differs from the classical AD curve in that:
a. the classical AD curve can shift in response to non-monetary shocks. b. the Keynesian AD curve can shift in response to monetary shocks. c. the Keynesian AD curve can shift in response to non-monetary shocks. d. there is no difference, both are determined by the quantity theory. e. none of the above.
Taxes can have different effects on different income groups. Which type of tax takes a larger percentage of income from high-income groups than from low-income groups?
(a) Progressive (b) Regressive (c) Proportional (d) Flat (e) Protective
A budget surplus is the:
A. amount of money a government spends beyond the net revenue it brings in. B. amount of net revenue a government brings in beyond what it spends. C. total amount of money that a government owes. D. total amount of money that a government receives from a tax increase.