Flag this Question Question 1 1 pts

If Robert goes to his local community college and learns to be a welder, there will be an impact on __________.

Group of answer choices

the aggregate supply curve, because he will be more productive

the aggregate demand curve, because he will earn and spend more money

neither the aggregate supply nor demand curve because human capital does not shift either curve

both the aggregate supply curve, because he will be more productive, and the aggregate demand curve, because he will earn and spend more money

Flag this Question Question 2 1 pts

Monetarists believe that the Fed should emphasize controlling the size of __________.

Group of answer choices

interest rates

the money supply

the money demand

structured payments

Flag this Question Question 3 1 pts

If AD is very flat and AS shifts to the right, then __________.

Group of answer choices

prices rise a lot, and output falls a little

prices fall a little, and output rises a lot

prices rise a little, and output falls a lot

prices fall a lot, and output falls a little

Flag this Question Question 4 1 pts

Which of the following is LEAST affected by the Fed's changes in money supply and interest rates?

Group of answer choices

the terms of new loans

the return on various assets

the rate of unemployment

the amount of funds available to borrow

Flag this Question Question 5 1 pts

In the __________ view, there are ample loanable funds available at the current interest rate. When G increases, no crowding out occurs, interest rates do not rise, and aggregate expenditures rise by the full amount of G.

Group of answer choices

classical

Keynesian

monetarist

Phillips

Flag this Question Question 6 1 pts

The __________ equals currency in the hands of the public plus bank reserves.

Group of answer choices

money stock

money supply

monetary base

monetary multiplier

Flag this Question Question 7 1 pts

During the Great Recession, which of the following unconventional methods was NOT used by the Fed used to stabilize the economy?

Group of answer choices

expanding the credit market to include direct lending to nonbank financial firms

lowering the federal funds rate to nearly zero

increasing the gold and silver reserves of all member banks and financial firms

guaranteeing the assets of firms deemed "too big to fail"

Chapter 14 Test Bank Questions

Current Issues in Stabilization Policy

Flag this Question Question 8 1 pts

To what are changes in employment and unemployment MOST closely linked?

Group of answer choices

changes in real output

rising bond prices

high rates of inflation

government taxes

Flag this Question Question 9 1 pts

Borrowing from the public and issuing bonds are two ways to finance increased government spending. What type of policy do these two methods reflect?

Group of answer choices

purely fiscal policy

purely monetary policy

neither monetary nor fiscal policy

a blend of monetary and fiscal policy

Flag this Question Question 10 1 pts

Dr. Louise Atwater is an economist who believes that market imperfections are large and, as a result, short run can be very long. To which school of thought does Dr. Atwater most likely belong?

Group of answer choices

classical

Keynesian

monetarist

new classical