Contrast the Keynesian and Monetarist views on the effectiveness of fiscal policy
Keynesians believe the aggregate supply curve is rather flat, and the monetarists view it as relatively vertical. As a consequence, expansionary fiscal policy is much more inflationary to Monetarists. In addition, the Monetarists believe the crowding out effect of expansionary fiscal policy is much larger than that argued by Keynesians, rendering fiscal policy ineffective. Keynesians, however, argue that fiscal policy is not only effective because of a small crowding out effect, but fiscal policy is more effective than monetary policy in stabilizing the business cycle.
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People who are currently not working but are actively looking for work are officially classified as
A) employed and out of the labor force. B) unemployed and out of the labor force. C) employed and in the labor force. D) unemployed and in the labor force.
Economists ________ that price controls are desirable
A) are reluctant to state B) never believe C) only recently agree D) are in agreement
Economic growth occurs because
A) labor forces grow. B) capital stocks grow. C) new inventions raise productivity. D) All of the above.
Which of the following is an effect of paper recycling on pulpwood?
a. Recycling leads to an increase in acreage devoted to pulpwood. b. Recycling leads to a decrease in acreage devoted to pulpwood. c. Recycling increases the demand for pulpwood. d. Recycling increases the market price of pulpwood.