Law which includes a cut in personal income tax aims to put more money into the hands of consumers. II. As part of its priorities, the Duterte administration implemented a significant increase in the budget for the Build, Build, Build program. III. Bangko Sentral ng Pilipinas increased key policy rates in response to rising inflationary pressures. IV. Inflation may be above the target or forecast of Bangko Sentral ng Pilipinas. V. Bangko Sentral ng Pilipinas increased key policy rates in response to expand money supply Which of the statements is a monetary policy that will likely ease inflationary pressure? O a. III and V O b. Ill only O c. V only O d. I only

Law which includes a cut in personal income tax aims to put more money into the hands of consumers. II. As part of its priorities, the Duterte administration implemented a significant increase in the budget for the Build, Build, Build program. III. Bangko Sentral ng Pilipinas increased key policy rates in response to rising inflationary pressures. IV. Inflation may be above the target or forecast of Bangko Sentral ng Pilipinas. V. Bangko Sentral ng Pilipinas increased key policy rates in response to expand money supply Which of the statements is a monetary policy that will likely ease inflationary pressure? O a. III and V O b. Ill only O c. V only O d. I only

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter25: The Keynesian Perspective

Section: Chapter Questions

Problem 7SCQ: List three practical problems with the Keynesian perspective.

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Refer to the following statements for items 6-9. 1. The TRAIN Law which includes a cut in personal income tax aims to put more money into the hands of consumers. II. As part of its priorities, the Duterte administration implemented a significant increase in the budget for the Build, Build, Build program. III. Bangko Sentral ng Pilipinas increased key policy rates in response to rising inflationary pressures. IV. Inflation may be above the target or forecast of Bangko Sentral ng Pilipinas. V. Bangko Sentral ng Pilipinas increased key policy rates in response to expand money supply Which of the statements is a monetary policy that will likely ease inflationary pressure? O a. III and V O b. III only O c. V only O d. I only
Refer to the following statements for items 6-9. 1. The TRAIN Law which includes a cut in personal income tax aims to put more money into the hands of consumers. II. As part of its priorities, the Duterte administration implemented a significant increase in the budget for the Build, Build, Build program. III. Bangko Sentral ng Pilipinas increased key policy rates in response to rising inflationary pressures. IV. Inflation may be above the target or forecast of Bangko Sentral ng Pilipinas. V. Bangko Sentral ng Pilipinas increased key policy rates in response to expand money supply. Which of the statements is/are examples of expansionary fiscal policy? O a. All statements except IV O b. Ill only O c. III and V O d. I and II
Refer to the following statements for items 6-9. 1. The TRAIN Law which includes a cut in personal income tax aims to put more money into the hands of consumers. II. As part of its priorities, the Duterte administration implemented a significant increase in the budget for the Build, Build, Build program. III. Bangko Sentral ng Pilipinas increased key policy rates in response to rising inflationary pressures. IV. Inflation may be above the target or forecast of Bangko Sentral ng Pilipinas. V. Bangko Sentral ng Pilipinas increased key policy rates in response to expand money supply. Which of the statements is/are examples of expansionary fiscal policy? O a. All statements except IV O b. Ill only O c. III and V d. I and II Clear my choice
Refer to the following statements for items 6-9. 1. The TRAIN Law which includes a cut in personal income tax aims to put more money into the hands of consumers. II. As part of its priorities, the Duterte administration implemented a significant increase in the budget for the Build, Build, Build program. III. Bangko Sentral ng Pilipinas increased key policy rates in response to rising inflationary pressures. IV. Inflation may be above the target or forecast of Bangko Sentral ng Pilipinas. V. Bangko Sentral ng Pilipinas increased key policy rates in response to expand money supply. Which of the statements is incorrect? O a. V only O b. III and IV O c. IV and V O d. None, all statements are correct
One of the fiscal measures of dealing with inflation is: a. Implement a budget surplus b. Operate a budget deficit c. Increase the rate of interest d. Operate a balance budget
a. Examine the fundamental causes of a nation’s business cycle fluctuations. Also, examine the relationship between total spending by government and consumers in a nation and the location of the countries’ GDP on the business cycle. b. 1. Suppose you have $200,000 in a bank term account. You earn 5% interest per annum from this account.You anticipate that the inflation rate will be 4% during the year. However, the actual inflation rate for the year is 6%.Calculate the impact of inflation on the bank term deposit you have and examine the effects of inflation in your city of residence with attention to food and accommodation expenses. 2. The Australian Bureau of Statistics (ABS) reported in May 2017 that the civilian population in Australia over 15 years of age was 20.8 million.Of this population of 20.8 million Australians, 13.5 million were employed and 0.7 million were unemployed.Calculate Australia’s labor force and the number of people in the civilian population who were not in…
(b) Assume that the household in an economy spend 75% of their extra income. Calculate the change of aggregate demand if government increase their spending by $150,000. (c) If prices keep rising, a nightmare scenario for the US economy is a real possibility New York (CNN Business) There's no denying it: Inflation is here. Consumer prices surged 7% over the past year. Housing prices have continued to soar, too. But the question on the minds of many economists and Wall Street strategists is whether something even worse could be in the cards: prices rising as the economy slows. Source: CNN Business, 12" January 2022. Examine the cause of stagflation, and how it affects the output and price level. (d) Based on part (c), what will happen to the output and price level if the US policymakers accommodate the shift in aggregate supply? State only one fiscal policy tool that the policymakers may use.
Which of the following is an effective fiscal tool to control inflation in boom times?a) Reducing government spendingb) Increasing government spendingc) Decreasing taxationd) Increasing money supply
According to the Keynesian framework, ____________ in _______________ may cause inflation, but not a recession. a. decrease; interest rates b. an increase; domestic spending c. a decrease; a major trading partner's economy d. a decrease; a mayor trading partner's export prices I believe the correct answer is the increase in domestic spending because it will cause inflation but will shift AD to the right. What do you think?
Suppose that inflation increases from Year #1 to Year#2 without growth. Which of the following graphs correctly shows this situation? (Note: Year #2 positions are shown with dark blue lines.) Price Level Price Level a Ps 0 1 LRAS QN Q₁ LRAS ON 0₁ A) Graph A B) Graph B C) Graph C D) Graph D SRAS SRAS UI SRAS, AD, (M-$800 billion; V - 3) MTD AD₂ (M-$820 billion; V = 3) SRAS, (c) MVT Real GDP AD₂ (M-$800 billion; V - 4) AD, (M-$800 billion; V - 3) Real GDP Price Level Price Level Qa 0 ON P₁ O -- 1 1 0₁ ON 2 -=-= LRAS 1 T LRAS 6 ở SRAS, SRAS₂ AD, (M-$800 billion; V-3) (b) AD₂ (M-$780 billion; V- 3) SRAS1 MIV SRAS2 (d) MV↓ Real GDP AD, (M-$800 billion; V-3) AD₂ (M-$900 billion; V=2) Real GDP
In the 1960s the U.S entered the Vietnam War, and military expenditures (part of government expenditures) grew from an annual rate of $113 billion to 138 billion. The economy was near full-employment and, therefore, given there was no offsetting tax increase, inflation pressures emerged. Assume the MPC is .75 C) With the AD Excess at $150 billion in 1968, what change in taxes would you have recommended? D) How would an increase in income/transfer payments of $150 billion have affected AD ? Have
1. With the country in a recession, you are to draw up a plan on how to stimulate the economy. You are a Keynesian and you decide to use a stimulus check approach as the best way to prime the pump. The economy has slipped back from an equilibrium level of Real GDP of 7.5 trillion dollars to 6.5 trillion dollars. The equilibrium CPI is 165. If the MPC is 0.80 how much will government spending have to increase to bring the economy to full employment? Draw a graph from the "Neo Keynesian" perspective labeling all the curves and axes, clearly illustrating where the economy is and where it wants to be.