The crowding out effect of expansionary fiscal policy when the money supply is not increased is confirmed by
A) the Keynesian econometric models only.
B) the Monetarist models only.
C) both the monetarist and Keynesian econometric models.
D) neither the Monetarist nor the Keynesian econometric models.
C
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Monetary policy is ________ flexible than fiscal policy because monetary policy changes are made by ________, while fiscal policy changes must be made by ________.
A. more; the President; legislative action B. more; legislative action; the FOMC C. more; the FOMC; legislative action D. less; the FOMC; the President
In a Dutch auction, the winner pays a price equal to ________
A) the market price of the good B) the value of the lowest bid C) his value for the good D) his bid
In the short run, if prices were above equilibrium,
a. excess aggregate demand for goods and services would place downward pressure on prices. b. excess aggregate supply of goods and services would place upward pressure on prices. c. excess aggregate demand for goods and services would place upward pressure on prices. d. excess aggregate supply of goods and services would place downward pressure on prices.
For a given shift in the aggregate demand curve, the flatter the short-run aggregate supply curve, the smaller the increase in real GDP and the larger the increase in the price level
Indicate whether the statement is true or false