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The emphasis on the greater incentives to produce, created by lower tax rates, has come to be known as:
a. monetarism.b. the permanent income hypothesis.c. the supply-side economics.d. the paradox of thrift.e. the trickle-down economics.
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- Aggregate demand and supply curves have been widely used to analyze the performance of the macroeconomy. Figure 6-3 shows four diagrams that represent different changes in the macroeconomy. Choose the diagram that best represents the situations described in the following questions. FIGURE 6-3 Real GDP (1) Real GDP (2) Real GDP (3) Real GDP (4) 19. Which graph best represents a government stabilization policy to counteract inflation? a. 1 b. 2 c. 3 d. 4Which statement is most likely consistent with the classical view? A.The Congress should set interest rate targets. B.The monetary policy is more effective than Keynesian theory. C.Fiscal policy works better than monetary policy. D.Fiscal and monetary policies cause more economic instability than stability.Refer to the information provided in Table below to answer the question. Labor force participation rate Total population 16 years of age and okder Unemployment rate 60% 200 million 5% Refer to Table The total number of people unemployed is Select one: a. 8 million. b. 6 million. C. 10 million. d. 3 million. If the Fed buys government securities, then there is Select one: a. a decrease in the supply of money. b. an increase in the required reserve ratio. C. a decrease in the discount rate. d. an increase in the supply of money.
- The pandemic caused the economy to slow down. Which one of the following is correct to speed up recovery. a. Tax cuts, increase money supply, raise the interest rates. b. Tax cuts, increase money supply, increase government spending. c. Tax cuts, decrease money supply, raise the interest rates. d. Tax cuts, decrease money supply, increase government spending.A government with debt has an incentive to create inflation to eliminate some debt. Why might it not always do this? I. The fisher effect II. The government cannot create inflation III. This may upset bond purchasers who are also voters IV. Borrowers and lenders come to expect increases in inflation, which increases the nominal interest rate III only I, III, and IV II and III only All of these aboveTrue/False section (Which of the following statements are true or false? Explain or show bu graph why it is true or false) c. Classical economists believe that when the aggregate supply curve is horizontal, monetary policy and fiscal policy will have no effect on real output. d. In the classical view of the labor market, it is implied that unemployment does not exist.
- When inflation happens in an economy… Select one: a. Workers who are paid the U.S.Federal Minimum wage find their pay checks able to buy more goods. b. People generally can buy goods for cheaper prices c. People who get social security checks will find them much lower relative to inflation d. there is less aggregate demand than there is income in the economy e. people who have money (wealth) in the bank find their buying power decreasing True or False? The biggest trading partner of the U.S. in 2021 is China. Select one: True False Please please give both 2 questions answers.i know sir policy but i have no more questions I will rate sir1. 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? a. III and V O b. Ill only O c. V only O d. I only Which of the following describes Country A with a budget deficit? a. Country A's revenue and spending are equal. O b. Country A has a positive budget balance. O c. Country A's revenue is greater than its spending. O d. Country A's spending is greater than its revenue.36. When a person receives extra income above their regular income, they have an option to save or spend that additional income. The portion of the extra income that is spent can be represented in a figure called: The Marginal Propensity to Consume Savings and Loan Theory The Marginal Propensity to Save The Piggy Bank Theory 37. Economics studies how people use scarce resources to make choices. Those choices can be influenced by: Consumers Incentives The government Taxes 38. What is a problem with nominal GDP when compared to real GDP? it represents past prices and is therefore unreliable it always grossly overstates the output of a nation It can represent deceptive outputs of a nation it has no problems or disadvantages 39. What is a fiscal cliff? A simultaneous increase in tax rates and cuts in government spending A simultaneous decrease in tax rates and cuts in government spending A simultaneous increase in…
- Question 1 140 - SAS, SAS2 130 120 SAS3 110 ADO 100 8. 10 11 12 Real GDP (trillions of 1996 dollars) The diagram about shows the initial aggregate demand curve, along with three aggregate supply curves. Explain the reason for each of your answers below: a. Which aggregate supply curve is consistent with Keynesian theory? b. Which aggregate supply curve is consistent with monetarist theory? c. Which aggregate supply curve is consistent with real business cycle theory? Price level (GDP deflator, 1996 = 100)The government runs a large budget deficit and the central bank conducts OMO purchase to buy the debt back: a)Inflation increases b)Inflation decreases c)Inflation stays the same d)Can't tellBack in the 1980s, the Ronald Reagan Administration reduced corporate taxes, which many economists believed increased production and profit for American companies and created economic growth. This statement BEST supports the view of: Select one: O a. Marginalists O b. Keynesian economists O c. Classical economists O d. Supply-side economists O e. Monetarists
