macro 15

1.

1 point

Which of the following is not a supply-side policy?

balance the budget

cut government spending

decrease entitlement programs

decreases taxes

increase government spending in response to a deflationary gap

2.

1 point

the crude quantity of theory of money assumes that

V and Q remain constant

V and Q vary

3.

1 point

THE QUANTITY THEORY OF MONEY ORIGINATED UNDER

classical

keneysians

monetarism

supply-side

the rational expectationists

paponisians

4.

1 point

which school of economics held that individuals and business firms learn, through experience, to instantaneously anticipate the consequences of changes in monetary and fiscal policy?

monteraists

keynesians

classicals

rational expectationists

supply-siders

papishians

5.

1 point

according to monetarists

an expansionary fiscal policy will lower interes rates and thereby tend to over-stimulate the economy

the supply of money changes in response to changes in the levels of real output and prices

changes in the money supply are the primary cause of changes in real output and the price level

changes in velocity of money are more important than changes in the money supply in causing the level of economic activity to change

6.

1 point

non interventionists include all of the following, except

new classical economists

keynesian economics

supply-side economics

rational expectationist

monetarists

7.

1 point

which of the following best describes the monetarist view of economic stabilization

fiscal policy is more effective than monetary policy

both monetary policy and fiscal are unable to influence output, employment, and the price level

monetary policy should be used to fine-tune the economy

discretionary policies often do more harm than good

discretionary policy are not very helpful but neither are they particularly harmful

8.

1 point

lowering tax rates was the main priority of the

classicals

keynesians

paponissians

monetarism

supply-siders

9.

1 point

the main disagreement among the economist about the laffer curve is about wether

increases in taxes will decrease GDP

cutting marginal tax rates will increase the incentive to work

the gov will collect maximum tax revenuew at a 50% tax rate

the effect of tax decreases on GDP will be so big as to raise gov revenues when taxes are cut

10.

1 point

Keynes did not accept the classical assumption that

V is constant in the short run

interest rates do not affect the quantity of money demanded

full employment is the natural state of the economy

any of those