Which of the following statements CORRECTLY describes the policy stance of a macroeconomist?
A) A monetarist believes that the quantity of money should be constantly changed in order to offset changes in aggregate demand.
B) A new classical macroeconomist believes that fiscal and monetary policy are required to maintain full employment.
C) A Keynesian believes that if taxes are always kept low and the quantity of money is kept on a steady growth path, no policy actions will be needed to maintain full employment.
D) A classical macroeconomist believes that maintaining consistently low taxes will allow the economy to expand at an appropriate and rapid pace.
D
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Examples of deflators are the ________ and ________ deflator
A) real; nominal B) private disposable income; gross national product C) personal consumption expenditure; gross domestic product D) gross domestic product; rental income E) private disposable income; personal consumption expenditure
Firms in monopolistic competition and perfect competition typically
a. are price takers b. produce identical products c. earn zero economic profit in the long run d. face a downward-sloping demand curve e. face an upward-sloping total revenue curve at all rates of output
When people look at what has just happened in the economy to conjecture what is about to happen, it is known as ______.
a. gradualism b. indexing c. adaptive expectations d. natural rate
The value of price elasticity of demand is negative because it indicates
A. the inverse relationship between the price offered and the quantity demanded for the good. B. that the changes in quantity demanded are much less compared to the changes in price for this good. C. the direct relationship between the price and consumer surplus from the good. D. that the value of the consumer surplus is negative for this good.