macroeconomic model and fiscal policy


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macroeconomic model and fiscal policy 1 answer below » 1-in the building the aggregate expenditure model ,keynes believe thata)economies are nomally at full employment and thus frequently susceptible to bouts of inflationb)massive unemployment of labor and capital created condition where sudden demand changes are unlikely to change pricesc)changes in aggregate expenditures are unable to affect the level of real out put in the economyd)government intervention into the economy is the primary cause of business cycle fluctuation2-expansionary fixal policy is so named because ita)is designed to expand real GDPb)involves an expansion of the nation View complete question » 1-in the building the aggregate expenditure model ,keynes believe thata)economies are nomally at full employment and thus frequently susceptible to bouts of inflationb)massive unemployment of labor and capital created condition where sudden demand changes are unlikely to change pricesc)changes in aggregate expenditures are unable to affect the level of real out put in the economyd)government intervention into the economy is the primary cause of business cycle fluctuation2-expansionary fixal policy is so named because ita)is designed to expand real GDPb)involves an expansion of the nation money supplyc)necessarily expands the size of governmentd)is aimed at achieving greater price stability3-which one of the following statement about the federal budget deficit is correcta)the federal budget deficit is found by subtracting government tax revenues from government spending in a particular yearb)the federal budget deficit is found by subtracting government tax revenues plus government borrowing from government spending in a particular yearc)the federal budget deficit is found by subtracting government revenues from the non investment type government spending in a particular yeard)the federal budget deficit is found by cumulating the differences between government spending and tax revenues over all years since the nations founding4-which one of the following statements about the standardized budget is correcta)the standardized budget tells us what the size of the federal budget deficit or surplus would be if the economy was at full employmentb)the standardized budget tells us that in a full employment economy the federal budget should be in balancec)the standardized budget tells us the actual budget deficit or surplus realized in any given yeard)the standardized budget tells us that tax revenues should vary inversely with GDP5-which one of the following is the best example of public investmenta)funding of regulatory agenciesb)government expenditures on food stampsc)salaries of senators and representativesd)construction of highways6-an economist who favored expanded government would recommenda)tax cuts during recession and reduction in government spending during inflationb)tax cuts during recession and tax increases during inflationc)tax increases in government spending during recession and tax increases during inflation7-which one of the following statements about the standardized budget is correcta)the standardized budget refers to the number of workers who are underemployed when the level of unemployment is 4 to 5 percentb)the standardized budget refers to that portion of a full employment GDP that isnt consumed in the year its producedc)the standardized budget refers to the size of the federal governments budgetary surplus or deficit when the economy is operating at full employmentd)the standardized budget refers to the inflationary impact that the automatic stabilizers have in a full employment economy8-imports have the same effect on the current size of GDP asa)exportsb)consumptionc)investmentd)saving9-which one of the following statements about dis saving is correcta)dissaving occurs where saving exceed consumptionb)dissaving occurs where saving exceed incomec)dissaving occurs where consumption exceeds incomed)dissaving occurs where income exceed consu…

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