Question

28. Which of the following policies would support the goals of macroeconomic policy?

Select the correct answer below:

a policy that reduces payroll taxes with the intention of creating jobs

an increase in government spending with the intention of stimulating economic growth

a reduction in government spending with the intention of halting the rate of inflation

all of the above

30. When there is a particularly significant downturn, where real GDP drops in a severe and sustained way, which economic condition is occurring?

Select the correct answer below:

economic boom

stagflation

The Great Depression

depression

Question 33

Which of the following statements is correct?

Select the correct answer below:

A clean environment has no impact on the standard of living in a country.

Higher spending on environmental protection always results in a cleaner environment and a healthier population, and thus a higher standard of living.

GDP includes spending on environmental protection, but it does not actually measure how effective that protection is.

None of the above.

Answer 1

28) All of the above. Government's actions are aimed at raising employment, creating economic growth and maintaining a low level of inflation for price stability. These policies are aimed at achieving these goals

30) It is called depression because in such a scenario, real GDP dips low enough so that it is sustained for a longer period and prices continue to remain low

33) None of the above. It is green GDP and not GDP in general which includes the spending on environment. Higher spending on environmental protection does not always ensure that standards of living are increased because the spending should be specifically targeted in eliminating the negative externalities of environmental degradation.