Assume the economy is operating at a real GDP above full-employment real GDP. Keynesian economists would prescribe which of the following policies?
a. Expansionary
b. Nonintervention
c. Passive monetary policy
d. Contractionary
d
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Speculators who think the euro is likely to decline over the next year can take all of the following actions EXCEPT
A) buying put options on euros. B) sell euro futures contracts. C) sell euro forward contracts. D) buying call options on euros.
The optimal time for the implementation of restrictive fiscal policy would be
a. before inflation accelerated. b. after inflation accelerated. c. during a recession. d. after the price level had risen significantly.
Which of the following events will increase short-run aggregate supply?
A) an advance in technology B) an increase in resource prices C) an increase in the natural rate of unemployment D) an increase in foreign income
The LM curve will shift to the right if
A. the interest rate decreases. B. the money demand increases. C. the average price level decreases. D. the money supply decreases.