Discretionary monetary policy was more frequently employed than discretionary fiscal policy in the two decades following World War II because
A) economic conditions did not seem to require any use of fiscal policy tools during this period.
B) economists did not yet believe in the effectiveness of fiscal policy.
C) inflation was not yet seen as a problem.
D) monetary policy could be altered without Congressional action.
E) monetary policy was thought to be capable of raising output while holding down prices.
D
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Despite some problems with equating GDP with economic well-being, higher real GDP per person does imply greater economic well-being because it tends to be positively associated with:
A. better education, health and life expectancy. B. poverty, depletion of nonrenewable resources, and congestion. C. crime, pollution, and economic inequality. D. unemployment, availability of goods and services, and better education.
The monetary multiplier is 3 and the change in the monetary base is $100,000. How much will the quantity of money increase?
A) $300,000 B) $200,000 C) $100,000 D) $70,000 E) $33,333
When supply shifts to the left, it would make the surplus from a price floor smaller, other things equal
a. True b. False Indicate whether the statement is true or false
The recession of 2007-2009 happened in part because, after the housing bubble burst in 2006, the ensuing financial crisis:
A. made it difficult for government to finance deficit spending. B. led to widespread inflation. C. shifted the PAE line upward. D. increased the level of uncertainty about the future.