Which of the following would those in favor of increasing government spending rather than decreasing taxes to prop up aggregate demand probablynotagree with?

a.Increases in government spending offer a greater "bang for the buck" than decreases in taxes.

b.Traditional Keynesian analysis indicates that increases in government purchases are a more potent tool than decreases in taxes for increasing aggregate demand.

c.When the government gives a dollar in tax cuts to a household, that dollar immediately and fully adds to aggregate demand.

d.Increased government spending on "shovel-ready" projects can be helpful to boost aggregate demand.

Keynes believed that people saving during a recession was bad for the economy.He said you needed to spend in order to save.Keynes called this

a.the Paradox of Thrift

b.the Classical Dichotomy

c.a liquidity trap

d.the Broken Window Fallacy

Which of the following isnota determinant of Long-Run Aggregate Supply?

a.the amount of natural resources

b.the price level.c.the amount of labor

d.the amount of physical capital

The Austrian Business Cycle Theory was developed by

a.Alan Greenspan

b.Ben Bernanke

c.John Maynard Keynes

d.F.A. Hayek

If the unemployment rate rises, which policies would be appropriate to reduce it according to the Keynesians?

a.increase the money supply, increase taxes

b.increase the money supply, cut taxes

c.decrease the money supply, cut taxes

d.decrease the money supply, increase taxes

An increase in the money supply causes

a.interest rates to decline and an increase in present value, which incentivizes businesses to delay expansion plans

b.interest rates to decline and an increase in present value, which incentivizes businesses to expand

c.interest rates and present value to decline, which incentivizes businesses to expand

d.interest rates and present value to increase, which incentivizes businesses to delay expansion plans

Which of the following shifts short-run aggregate supply right?

a.an increase in the supply of oil

b.an increase in the minimum wage

c.a pandemic

d.an increase in corporate tax rates

Which of the following would graphically solve stagflation

a.shift the aggregate demand curve to the left

b.shift the short-run aggregate supply curve to the right

c.shift the long-run aggregate curve to the left

d.shift the aggregate demand curve to the right

The national debt increased by over $4 trillion last year. An economist would expect

a.interest rates andprivate investment to decrease.

b.interest rates to decrease and private investment to increase.

c.interest rates to decrease and private investment to decreased.interest rates to increase and private investment to decrease.

What policy body sets margin rates

a.the Federal Reserve

b.the Treasury Department

c.Congress

d.The U.S. Mint

When the money supply increases

a.interest rates rise and so aggregate demand shifts right.

b.interest rates rise and so aggregate demand shifts left

c.interest rates fall and so aggregate demand shifts right.

d.interest rates fall and so aggregate demand shifts left.

All of the following are transfer paymentsexcept

a.unemployment compensation.

b.Social Security.

c.spending on the military

d.Medicare