1- An increase in business investment spending has the same effect on the level of ad as an increase in the same amount of government spending. -true 2- If the government increased taxes by $10 at the same time it increased spending by $10 there would be no effect on the level of AD. 3- If social security payments to retirees increase, AD will increase and raise Y*. -true 4- Tax cuts in the classical range of the AS will stimulate output and unemployment -false 5- Increasing welfare payments by borrowing money to do so will increase AD- true 6- if the mpc increases, the multiplier decreases- false 7- if the mps increases the multiplier decreases -true 8- part of the cost of growing government budget deficits is and “opportunity cost” of what else could have been done with the money, particularly if the borrowing is used to increase consumption spending. -true 9- tax cuts in the classical range of the AS curve will stimulate output and employment. -true 10- if the AS curve were flat/horizontal an increase in AD would not be inflationary- true 11- an increase in AD might be cause by improving technology in manufacturing processes. -false? That would effect AS. 12- Inflation is thought to not be a problem in the Keynesian range of the AS curve- true 13- An increase in AD might be the result of higher taxes on households. -false 14- Crowding out, when it occurs, involves increasing interest rates. -false 15- In the Keynesian range of the AS curve, increases in taxes will raise unemployment- true 16- If the MPC is .95 and taxes are increased by $20, AD will increase by $380- true 17- If Y* is more than Yfe, the economy is in the classical range of the AS curve- true 18- tax cuts directed at higher income individuals will do more to stimulate the economy than those directed to lower income individuals, in the keynesian model.-true 19- growing federal budget deficits are a problem cased by kenynesian economics- false 20- Keynes advocated using government deficits in times of depression -true
can you tell me which questions i've gotten wrong? This is a practice quiz that doesnt tell you the correct answers at the end. thanks
1- An increase in business investment spending has the same effect on the level of ad as an increase in the same amount of government spending. -true
2- If the government increased taxes by $10 at the same time it increased spending by $10 there would be no effect on the level of AD.
3- If social security payments to retirees increase, AD will increase and raise Y*. -true
4- Tax cuts in the classical range of the AS will stimulate output and
5- Increasing welfare payments by borrowing money to do so will increase AD- true
6- if the mpc increases, the multiplier decreases- false
7- if the mps increases the multiplier decreases -true
8- part of the cost of growing government budget deficits is and “
9- tax cuts in the classical range of the
10- if the AS curve were flat/horizontal an increase in AD would not be inflationary- true
11- an increase in AD might be cause by improving technology in manufacturing processes. -false? That would effect AS.
12- Inflation is thought to not be a problem in the Keynesian range of the AS curve- true
13- An increase in AD might be the result of higher taxes on households. -false
14- Crowding out, when it occurs, involves increasing interest rates. -false
15- In the Keynesian range of the AS curve, increases in taxes will raise unemployment- true
16- If the MPC is .95 and taxes are increased by $20, AD will increase by $380- true
17- If Y* is more than Yfe, the economy is in the classical range of the AS curve- true
18- tax cuts directed at higher income individuals will do more to stimulate the economy than those directed to lower income individuals, in the keynesian model.-true
19- growing federal budget deficits are a problem cased by kenynesian economics- false
20- Keynes advocated using government deficits in times of depression -true
Step by step
Solved in 2 steps
