Search
.Management Sciences
Category: Roots of Modern Macroeconomics
The government increase government spending to try to reduce unemployment This is an example of ?
A. laissez-faire.
B. monetary policy
C. fine tuning
D. automatic stablisers
The persistence of a phenomenon such as unemployment, even then its causes have been removed is called ?
A. the fallacy of composition
B. negative entropy.
C. hysteresis.
D. ceteris paribus
A group of modern economists who believe that markets clear very rapidly and that expanding the money supply will always increase prices rather than employment are the ?
A. Keynesians
B. post-keynesians
C. monetarists
D. new classical school
New classical theories were an attempt to explain ?
A. how unemployment could have persisted for so long during the Great Depression
B. The increase in the growth rate of real output in the 1950s
C. the stagflation of the 1970s
D. Why policy changes that are perceived as permanent have more of an impact on a person’s behaviour than policy changes that are viewed as temporary.
The hypothesis that people know the true model of the economy and that they use this model to form their expectations of the future is the ?
A. Rational-expectations hypothesis
B. Passive-expectations hypothesis
C. adaptive expectations hypothesis
D. lagged-expectations hypothesis.
According to the classical economists the economy ?
A. requires fine tuning to reach full employment
B. can never deviate from full employment
C. will never be at full employment
D. is self-correcting.
The quantity theory of money implies that a given percentage change in the money supply will cause ?
A. an equal percentage change in nominal DGP.
B. an equal percentage change in real GDP
C. a larger percentage change in nominal GDP
D. a smaller percentage change in nominal
If the demand for money depends on the interest rate the velocity of circulation is ?
A. not constant and the quantity theory of money does hold.
B. constant and the quantity theory of money does hold.
C. not constant and the quantity theory of money does not hold.
D. constant and the quantity theory of money does not hold.
The regarding the new classical macroeconomics is hoe realistic is the assumption ?
A. that monetary policy affects aggregates demand
B. that markets do not clear quickly
C. that fiscal policy affects aggregate demand
D. of rational expectations.
People are said to have rational expectations if they ?
A. assume that this year’s inflation rate will be the same as last year’s inflation rate
B. merely guess at the inflation rate.
C. assume that this year’s inflation rate will be equal to the average inflation rate over the past 10 years
D. Use all available information in forming their expectations.
Recent Comments