According to new Keynesian theory, if policy is correctly anticipated, increases in aggregate demand will stimulate the economy to higher levels of Real GDP and lower levels of unemployment in
A) the short run or the long run.
B) neither the short run nor the long run.
C) the short run, but not in the long run.
D) the long run, but not in the short run.
C
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The Social Security Administration estimates that the Social Security Trust Fund will ________ and that the Medicare Trust Fund will ________
A) become fully funded by 2036; become fully funded by 2024 B) continue to get smaller as the number of retirees increases; start to grow once funds from Obamacare are funneled to the program C) grow slowly as more workers retire; decline slowly as medical costs rise D) run out of funds in about 20 years; run out of funds in about 10 years
In the IS-LM model, an easy monetary in conjunction with a tight fiscal policy
a. increases exports and decreases imports. b. decreases exports and increases imports. c. encourages foreign capital inflows to the U.S. d. both b and c. d. None of the above
Mrs. Dodge has $8 million in income and pays no income taxes. Her income is most likely
a. capital gains. b. interest on corporate bonds. c. interest on municipal bonds. d. offset by mortgage interest.
Economists say that voluntary exchange makes both parties better off. What is the explanation that they offer to back up this conclusion?