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Macroeconomic Policy Tools

When an increase in government purchases increases the income of some people, and those people spend some of that increase in income on additional consumer goods, we have seen a demonstration of ?

Economics Mcqs, Macroeconomic Policy Tools /
When an increase in government purchases increases the income of some people, and those people spend some of that increase in income on additional consumer goods, we have seen a demonstration of ?

A. The multiplier effects
B. supply side economics
C. None of these answers
D. The crowding out effect

When an increase in government purchases increases the income of some people, and those people spend some of that increase in income on additional consumer goods, we have seen a demonstration of ? Read More »

Economics Mcqs, Macroeconomic Policy Tools

Which of the following statements regarding taxes is correct ?

Economics Mcqs, Macroeconomic Policy Tools /
Which of the following statements regarding taxes is correct ?

A. Most economists believe that in the short run the greatest impact of a change in taxes is on aggregate supply, not aggregate demand
B. An increase in taxes shifts the aggregate demand curve to the right
C. A decrease in taxes shifts the aggregate supply curve to the left
D. A permanent change in taxes has a greater effect on aggregate demand than a temporary change in taxes.

Which of the following statements regarding taxes is correct ? Read More »

Economics Mcqs, Macroeconomic Policy Tools

Suppose a wave of investor and consumer optimisms has increased spending so that the current level of input exceeds the long-run natural rate If policy makers choose to engage in activist stabilization policy they should ?

Economics Mcqs, Macroeconomic Policy Tools /
Suppose a wave of investor and consumer optimisms has increased spending so that the current level of input exceeds the long-run natural rate If policy makers choose to engage in activist stabilization policy they should ?

A. decrease government spending Which the shifts the aggregate demand curve to the left
B. decrease taxes, which shifts the aggregate demand curve to the right
C. decrease taxes, which shifts the aggregate demand curve to the left
D. decrease government spending which shifts the aggregate demand curve to the right

Suppose a wave of investor and consumer optimisms has increased spending so that the current level of input exceeds the long-run natural rate If policy makers choose to engage in activist stabilization policy they should ? Read More »

Economics Mcqs, Macroeconomic Policy Tools

Suppose a wave of investor and consumer pessimism in the USA causes a reduction in spending If the US federal Reserve (Which has a broader remit than the Bank of England Which is charged only with controlling inflation) chooses to engage in activist stabilization policy it should ?

Economics Mcqs, Macroeconomic Policy Tools /
Suppose a wave of investor and consumer pessimism in the USA causes a reduction in spending If the US federal Reserve (Which has a broader remit than the Bank of England Which is charged only with controlling inflation) chooses to engage in activist stabilization policy it should ?

A. Increase government spending and decrease taxes
B. decrease the money supply
C. decrease government spending and increase taxes
D. decrease interest rates

Suppose a wave of investor and consumer pessimism in the USA causes a reduction in spending If the US federal Reserve (Which has a broader remit than the Bank of England Which is charged only with controlling inflation) chooses to engage in activist stabilization policy it should ? Read More »

Economics Mcqs, Macroeconomic Policy Tools

In the market for real output, the initial effect of an increase in the money supply is to ?

Economics Mcqs, Macroeconomic Policy Tools /
In the market for real output, the initial effect of an increase in the money supply is to ?

A. shift the aggregate supply curve to the right
B. shift the aggregate supply curve to the left
C. shift the aggregate demand curve to the left
D. shift the aggregate demand curve to the right

In the market for real output, the initial effect of an increase in the money supply is to ? Read More »

Economics Mcqs, Macroeconomic Policy Tools

When supply and demand for money are expressed in a graph with the interest rate on the vertical axis and the quantity of money on the horizontal axis an increase in the price level ?

Economics Mcqs, Macroeconomic Policy Tools /
When supply and demand for money are expressed in a graph with the interest rate on the vertical axis and the quantity of money on the horizontal axis an increase in the price level ?

A. shifts money demand to the right and increases the interest rate
B. None of these answers
C. shifts money demand to the right and decreases the interest rate
D. shifts money demand to the left and increases the interest rate
E. shifts money demand to the left and decrease the interest rate

When supply and demand for money are expressed in a graph with the interest rate on the vertical axis and the quantity of money on the horizontal axis an increase in the price level ? Read More »

Economics Mcqs, Macroeconomic Policy Tools

Keynes liquidity preference theory of the interest rate suggests that the interest rate is determined by ?

Economics Mcqs, Macroeconomic Policy Tools /
Keynes liquidity preference theory of the interest rate suggests that the interest rate is determined by ?

A. aggregate supply and aggregate demand
B. the supply and demand for loanable funds
C. the supply and demand for money
D. the supply and demand for labor

Keynes liquidity preference theory of the interest rate suggests that the interest rate is determined by ? Read More »

Economics Mcqs, Macroeconomic Policy Tools