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gorgeous gorgeous
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5 years ago

Question 1.

According to new classical economists, if the Fed increases the money supply after it announces it, output ________ and the price level ________.



▸ increases; remains constant

▸ remains constant; increases

▸ remains constant; remains constant

▸ increases; increase

Question 2.

Supporters of supply-side economics claim that Reagan's tax policies were quite successful in stimulating the economy because



▸ almost immediately after the tax cuts, the economy expanded and the recession of 1980-1982 came to an end.

▸ inflation rates fell sharply from the high rates of 1980 and 1981.

▸ throughout most of the 1980s, federal receipts continued to rise even though tax rates had been cut.

▸ All of these.
Textbook 
Principles of Economics

Principles of Economics


Edition: 12th
Authors:
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jesika1122jesika1122
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