A central bank can bring output back up to efficient level in the New Keynesian model by
A) decreasing the money supply.
B) increasing the money supply.
C) decreasing government expenses.
D) increasing government expenses.
B
You might also like to view...
The lack of a universal productivity effect of higher education was demonstrated by the experience of
a. the United Kingdom. b. Ireland. c. France. d. the Soviet Union.
Adam Smith asserted that a person should never attempt to make at home
a. what it will cost him more to make than to buy. b. any good in which that person does not have an absolute advantage. c. any luxury good. d. any necessity.
A noncooperative game situation may occur when
A. firms merge. B. firms collude. C. firms find collusion too costly. D. firms agree to price fixing.
If there are external costs of production not accounted for, then marginal
A. social cost is zero. B. cost equals marginal social cost. C. cost is greater than marginal social cost. D. cost is less than marginal social cost.