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Unformatted text preview: PAGE 1 Name..................................Exam number......................... Topic 14: Five Debates over Macroeconomic Policy Multiple Choice 1. Fluctuations in employment and output result from changes in a. aggregate demand only. b. aggregate supply only. c. aggregate demand and aggregate supply. d. neither aggregate demand nor aggregate supply. 2. Which of the following will happen if consumers become more pessimistic about the future of the economy? a. aggregate demand shifts left b. output falls c. employment falls d. All of the above are correct. 3. "Leaning against the wind" is exemplified by a. an increase in government expenditures when there is a recession. b. a tax cut when there is an expansion. c. a decrease in the money supply when there is a recession. d. All of the above are correct. 4. Those who desire that policymakers stabilize the economy would advocate which of the following when aggregate demand is insufficient to ensure full employment?...
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This note was uploaded on 02/09/2010 for the course ECON 101 taught by Professor Buddin during the Spring '08 term at UCLA.
- Spring '08