If discretionary fiscal policy creates a federal budget deficit, the economy must be experiencing falling output
a. True
b. False
Indicate whether the statement is true or false
False
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Monetarists believe that changes in monetary policy would have:
a. only short-term effect on the price level. b. only short-term effect on real GDP. c. only long-term effect on real GDP. d. no effect on price level and real GDP. e. both short-term and long term effect on real GDP.
The Federal Reserve Open Market Committee meets about ____ times a year
a. 8. b. 12. c. 4. d. 2. e. 24.
A demand curve can be thought of as
a. a graphical display of "market potential." b. a graphical representation of the information in a demand schedule. c. showing how much people want to buy. d. a forecasting tool. e. All of the above are correct.
What does the structural stagnation hypothesis say about how soon the economy will return to its trend growth?
A. The economy has already returned to its previous trend growth rate. B. It will be a long time before the economy returns to its previous trend growth rate. C. The economy will never return to its previous trend growth rate. D. The economy will return to its previous trend growth rate soon.