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Home Search Your Textbook Macroeconomics: Principles, Applications and Tools Chapter 15 Questions

Questions for: Macroeconomics: Principles, Applications and Tools — 7e

All Types Multiple Choice Short Answer Essay

Suppose the unemployment rate is ________ the natural rate. We would expect to see GDP ________ ...

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For most firms, wages are the smallest cost of production.

How do economists' beliefs about the speed of the adjustment process affect their recommendations ...

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If the economy is operating below full employment, falling wages and prices will increase money ...

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In order for the classical economic model to work, prices and wages must be fully flexible.

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Classical economics is often associated with Say's law, the doctrine that "supply creates its own demand."

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Politicians sometimes have the incentive to take advantage of the differences between the short-run ...

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Long-run money neutrality means that an increase in the money supply has no effect on real interest ...

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When GDP is below potential output, prices fall because

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If increases in government spending on infrastructure projects "crowd out" private investment ...

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Explain Say's law from a classical economic perspective.

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If the unemployment rate is below the natural rate, then we expect to see

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Suppose that the unemployment rate is ________ the natural rate. We would expect prices to rise, ...

Keynes expressed doubts that that the economy would

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The wage-price spiral can work in reverse.

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Suppose GDP ________ the level of potential output. We would expect to see ________ unemployment, ...

If increases in defense spending by the government "crowd out" private investment spending, this ...

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The term "crowding out" refers to increases in government spending which affect private investment spending.

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How long do economists think it takes the U.S. economy to move from the short run to the long run?

In ________, monetary policy can change the level of output.

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