Mainstream economists support:
A. Adoption of a monetary rule for increases in the money supply
B. Elimination of efficiency wages and insider-outsider relationships
C. The requirement that the government annually balance its budget
D. The use of discretionary monetary and fiscal policy for achieving major economic goals
D. The use of discretionary monetary and fiscal policy for achieving major economic goals
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In response to the financial crisis of 2007 and the ensuing recession, the Fed announced three rounds of "quantitative easing," where the Fed purchased billions of dollars of securities
What impact would quantitative easing have on the monetary base? A) The monetary base would increase. B) The monetary base would decrease. C) The monetary base would not change. D) While the monetary base would change, it is impossible to predict in which direction.
In the context of growth, the goal of stabilization policy once per capita output is equal to potential per capita output is to
A) insure that the percentage change in per capita output and potential per capita output over time are equal. B) raise the growth rate of potential per capita output above that of per capita output. C) raise the growth rate of per capita output above that of potential per capita output. D) None of the above is correct.
The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
Discuss what is meant by the neoclassical synthesis and explain how it emerged
What will be an ideal response?