Name two policies that a Keynesian economist would advocate to influence the level of GDP in the short run
What will be an ideal response?
changes in taxes and spending
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The federal budget experienced surpluses from _____
a. 1998 to 2001 b. 2002 to 2006 c. 1970 to 1973 d. 1991 to 1994 e. 1985 to 1988
When choosing how much money they wish to hold in their financial portfolios, people trade off money's advantage of liquidity against the opportunity cost of holding money rather than other financial assets
a. True b. False Indicate whether the statement is true or false
What does a vertical Phillips curve in the long run imply? a. In the long run, the rate of unemployment will converge toward zero. b. Higher inflation does not permanently reduce the rate of unemployment. c. Higher inflation increases the rate of unemployment
d. Higher inflation lowers the rate of unemployment.
The commercial paper market was an important ingredient of the Great Recession because:
a. It is the market on which mortgages are financed, and, due to the Great Recession, this market dried up. b. It is the market on which many companies finance their daily working capital needs and, due to the Great Recession, this market dried up. c. The commercial paper market was the only financing source open to companies during the great recession. d. All of the above.