According to structural stagnationists, expansionary monetary and fiscal policy has allowed the economy to address its structural problems and adjust in an expedient manner.
Answer the following statement true (T) or false (F)
False
According to the structural stagnationists, these policies, though well intended, created the illusion that the economy was doing better than it really was. This has slowed down the adjustment process and masked underlying structural problems.
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In the above figure, the economy initially is at point C. Then the domestic price level rises by 10. A
A) substitution effect would help move the economy to point D. B) substitution effect would help move the economy to point B. C) substitution effect would keep the economy at point C. D) wealth effect would help move the economy to point B.
Economist John Maynard Keynes is famous for saying, "In the long run, we are all dead." He is referring to the:
A. length of time it can take the economy to recover to potential GDP without policy intervention. B. permanent inflation that results in long-run adjustments. C. fact that no policy can affect the long-run equilibrium. D. notion the economy is sure to collapse in the long run.
Which of the following elements of the federal income tax code are not indexed for inflation?
A. The standard deduction B. The brackets C. The personal exemption D. All of these elements are indexed.
If a tax is imposed on a good,________
A) consumer surplus increases B) producer surplus increases C) the quantity of the good traded in the market increases D) the equilibrium quantity of the good in the market falls