Please give every part answer and take like Economics: Which of the following policies is consistent with Keynesian economics during an economic downturn? A)Austerity measures to reduce government debt B) Tax cuts for high-income individuals C) Increased governmentspending on infrastructure projects D) Deregulation of financial markets 6. According to Keynesian economics, what isthe role of monetary policy in managing the economy? A) Increase interest rates during recessions B) Decrease mon

5. C) Increased government spending on infrastructure projectsKeynesian economics argues that…

Answered: Economics: Which of the following…

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter36: Six Debates Over Macroeconomic Policy

Section: Chapter Questions

Problem 4PA

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Question 4Suppose a country’s inflation level is higher than desired, and unemployment levels arelower than expected – the central bank decides that the economy is ‘overheated’ andattempts to use the appropriate monetary policy to deal with the situation. Describe,with the help of the appropriate figure, how a central bank might go about implementingsuch monetary policy, the subsequent effects this has on interest rates, the quantity ofmoney in the market, and the process through which this affects the level of expenditurein the economy.
Which of the following is true of monetary policy? a. If the Fed wants to increase the money supply, it should increase the interest rate it pays banks on their reserves. b. The long and variable lags between a shift in monetary policy and when the policy shift affects output and employment makes it easier for the Fed to time monetary policy properly. c. A monetary policy that maintains price stability provides the foundation for both economic stability and the smooth operation of a market economy. d. The Fed should try to push real interest rates to the lowest possible level in order to stimulate investment and aggregate demand.
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3. If the economy is at the natural rate of unemployment with the level of real GDP at potential output, what would expansionary fiscal or monetary policy do to the economy? How would the economy be affected in the short run and long run?
This is multiple choice question, Pls solve it quickly !!
Analysis of the Great Depression indicates that a. even though monetary and fiscal policies were highly expansionary, they were unable to offset the economic downturn. b. the depth of the economic plunge, if not its onset, was the result of monetary, fiscal, and regulatory policies. c. a reduction in tax rates could not prevent the economic downturn from spiraling into a depression. d. even though monetary policy was expansionary, restrictive fiscal policy dominated during the 1930s. 0000
18. Which of the following policies is not classed as a stabilization policy? 4) A policy aimed at reducing unemployment. b) A policy aimed at reducing the number of people in poverty. C) A policy aimed at reducing the rate of inflation. d) A policy aimed at shifting the production possibility frontier outwards. 19. Which of the following statements is a positive statement? a) Bankers' bonuses should be taxed. D) The eurozone ought to allow member countries in difficulty to stop using the euro and use currencies of their own instead. c) One of the largest industries in the UK is the financial services industry. d) The UK government ought to split up some of the largest UK banks to promote more competition in the banking industry. 20. Suppose you buy Economics book by Abigail Padi. What is the opportunity cost of your purchase? a) The money you paid for the book. b) Whatever you would have spent the money on if you had not bought the book. c) The cost of producing the book. d) The time…
One of the advantages monetary policy in relation to fiscal policy is that: a. It is easier to control b. It reduces the role of the state in the economy C. It can be adjusted faster if necessary d. It makes it more difficult to engage in speculation
What does the term exogenous money supply mean? a. The money supply is determined by external factors b. The money supply is controlled by households c. The money supply is determined by the central bank d. The money supply is determined by market forces.
QUESTION 1 The major difference between the Keynesian approach and the monetarist approach is that a. there are no differences. b. Keynesian analysis explains an equilibrium condition and monetarism does not. c. monetarism explains an equilibrium condition and Keynesian analysis does not. d. in Keynesian analysis, money affects the economy by first affecting interest rates; monetarist analysis is not limited to working through interest rates. QUESTION 2 When comparing the Keynesian and monetarist approaches, the only substantive difference is that a. Keynesians approach aggregate demand by multiplying the money supply by velocity, while monetarists use the equilibrium conditions of the expenditure schedule. b. Keynesian analysis suggests that money affects consumption first while monetarist analysis suggests that money affects investment spending first. c. the Keynesian equation leads to a prediction of real GDP; the monetarist equation…
3. Monetary Policya. Assume the economy is inflationary where Y>Y* and P<P* demonstrate the state of the economy graphically and explain.b. Assume the MPC for the US is 80% and the government decides to increase regulation on business such that the cost of doing business increases by 3% or $500 billion dollars per year in the aggregate. Demonstrate and explain you answer fully.c. What Monetary Policy should the Federal Reserve Implement? What choices do they have to effect this policy? Demonstrate and explain the effects of this policy on the economy? Hint use the 5 steps from class
how inflation has caused monetary Policy to change and how? Would it be advantageous to borrow money if you expected prices to rise? Would you want a fixed-rate loan or one with an adjustable interest rate? a). List and explain the 3 tools of monetary policy discussed. Compare the rates before the pandemic, during the pandemic, and now.What tools are being used to reduce inflation? Compare all the monetary policy tools before and after inflation.

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