If the economy is in recession, explain what advice you would give the President, if you were a monetarist economist. What if you were a Keynesian?
What will be an ideal response?
If you were a monetarist, you would tell the President not to intervene in the economy because the economy will naturally move to full employment in the long run. If you were a Keynesian, you would advocate intervention in the form of lower taxes or more government spending, because Keynesians do not believe that the economy will achieve full employment by itself.
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Which of the following was specifically instituted to ensure a successful hard peg?
A) the Bretton Woods Agreement B) the European Monetary System C) the European Monetary Union D) the International Monetary Fund
In the simple Keynesian model (no money market) assume that equilibrium output falls short of potential output by 300 units and the MPC = 0.8 . The size of the tax cut needed to reach full employment is
a. 30. b. 60. c. 75. d. 300.
If a consumer is given a $10 gift certificate good only for items in store X, and all items in store X are normal goods, then the consumer desires to consume:
A. the same amount of goods in store X. B. more goods in store X. C. fewer goods in store X. D. None of the statements is correct.
Consider an NBA superstar Kobe Bryant and one of your economics professors. Who is likely to receive more economic rent in his/her job? Explain your answer
What will be an ideal response?