Question

1. A recession with inflation is known by what term? 2. The goal of stabilization policy...

1. A recession with inflation is known by what term?

2. The goal of stabilization policy is to stabilize aggregate _____. As a result, stabilization policy will also stabilize _____ and _____.

3. According to the Phillips curve, which fiscal policies can be used to reduce unemployment in the short run?

4.List the three reasons for why the aggregate-demand curve slopes downward.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #2

1) A recession with inflation is known as Stagflation refers to a situation in which inflation is high and the rate of economic growth is slow.

2) The goal of stabilization policy is to stabilize aggregate demand.

As a result,stabilization policy will also stabilize output and employment.

3) A Phillips curve shows the trade off between unemployment and inflation and in the short run,the government can increase its spending and reduce taxes to shift the AD curve to the right which will reduce unemployment

4) The three reasons why aggregate demand curve slopes downward is because of:

Interest rate effect

Wealth effect

Exchange rate effect

answered by: anonymous
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The aggregate demand curve shows the relationship between the aggregate price level and: A) aggregate productivity....
The aggregate demand curve shows the relationship between the aggregate price level and: A) aggregate productivity. B) the aggregate unemployment rate. C) the aggregate quantity of output demanded by households, businesses, the government, and the rest of the world. D) the aggregate quantity of output demanded by businesses only. 2.When the aggregate price level increases, the purchasing power of many assets falls, causing a decrease in consumer spending. This is known as the _____ effect and is a reason why...
5. Government purchases of goods and services differ from changes in taxes and transfer payments in...
5. Government purchases of goods and services differ from changes in taxes and transfer payments in that: A) the former is a type of fiscal policy, while the latter is a type of monetary policy. B) the former is a type of monetary policy, while the latter is a type of fiscal policy. C) the former influences aggregate demand directly, while the latter influences aggregate demand indirectly. D) the former influences aggregate demand indirectly, while the latter influences aggregate demand...
If the government implements a contractionary fiscal policy measure, but keeps monetary policy inactive, according to...
If the government implements a contractionary fiscal policy measure, but keeps monetary policy inactive, according to the short run Phillips Curve: a. actual inflation will decline and unemployment will decline as well b. actual inflation will increase and unemployment will decrease c. actual inflation will decline and unemployment will increase d. expected inflation will decline and unemployment will decline as well
Some questions may contain one or more answers. Please explain why. 1) During the Great Recession,...
Some questions may contain one or more answers. Please explain why. 1) During the Great Recession, the goal of fiscal policy was to Increase aggregate demand Decrease aggregate supply None of these Decrease aggregate demand (incorrect) Increase aggregate supply 2) According to the Keynesian framework, which of the following may help a country reduce inflation, but will not help that country to get out of a recession? Increased spending by the government on health care An increase in military spending...
1. Milton Friedman argued that there is a                a.            permanent downward-sloping Phillips curve.    &
1. Milton Friedman argued that there is a                a.            permanent downward-sloping Phillips curve.                b.           temporary downward-sloping Phillips curve.                c.            temporary upward-sloping Phillips curve.                d.           permanent upward-sloping Phillips curve. 2.            Milton Friedman argued that the economy is not in long-run equilibrium if the expected inflation rate __________ the actual inflation rate.                a.            is less than                b.           is greater than                c.            equals                d.           a and b...
1. A. A major recession is looming. Turning to discretionary fiscal policy, Congress might vote to...
1. A. A major recession is looming. Turning to discretionary fiscal policy, Congress might vote to __________(what?)________________? B. The economy is at very low unemployment rates and inflation rates are increasing. Turning to discretionary fiscal policy, Congress might vote to _____________(what?)___________________. 2. If Government Spending increases by $100 B and we're operating on the flat ("Keynesian") range of Aggregate Supply, will real GDP increase by (a) less than $100B, (b) $100 B, or (c) more than $100 B? (a multiple...
Short-run contractionary fiscal policy would result in: AD moving to the right. AS moving to the...
Short-run contractionary fiscal policy would result in: AD moving to the right. AS moving to the right. AD moving to the left. AS moving to the left. Stimulus checks and tax changes are all examples of Monetary Policy Fiscal Policy Contractionary Policy Expansionary Policy If the federal government decide a contractionary fiscal policy is ​necessary, what changes should they make in government spending or​ taxes? The federal government should enact policies that decrease government spending and decrease taxes. The federal...
A decrease in tax rates has no effect on the AD curve. causes the AD curve...
A decrease in tax rates has no effect on the AD curve. causes the AD curve to shift left. causes the AD curve to shift right. has only a short-term effect on real GDP. usually leads to a reduction in potential GDP. 2. To reduce the size of economic fluctuations, the government could make fewer permanent changes in government spending. change government purchases often to encourage a shift of the aggregate demand curve. increase spending during a recession and decrease...
1) If the Federal Reserve conducts an open market purchase, we can expect that the short-run...
1) If the Federal Reserve conducts an open market purchase, we can expect that the short-run Phillips curve will shift left. the short-run Phillips curve will shift right. t here will be a movement to the right along the short-run Phillips curve. there will be a movement to the left along the short-run Phillips curve. the long-run Phillips curve will shift right. 2) In the long run, the Phillips Curve shows that the natural rate of unemployment is independent of...
8. Which policy is associated with time inconsistency? A. inflation targeting. B. the Taylor rule. C....
8. Which policy is associated with time inconsistency? A. inflation targeting. B. the Taylor rule. C. money growth rules. D. discretionary policy. E. the gold standard. 9. If real GDP is above potential (or natural level), then A. wage rates will eventually fall and the short-run aggregate supply curve will shift left. B. wage rates will eventually rise and the aggregate demand curve will shift left. C. wage rates will eventually rise and the short-run aggregate supply curve will shift...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT