Chapter_28 - YourResultsfor:"SelfStudyQuiz"...

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Your Results for: "Self-Study Quiz" Print this page Site Title: Principles of Economics, Eighth Edition Book Title: Principles of Economics, 8/e Book Author: Case/Fair Location on  Site: Chapter 28 > Self-Study Quiz Date/Time  Submitted: February 9, 2012 at 5:04 AM  (UTC/GMT) Summary of Results 40% Correct  of 40 Scored items: 16 Correct:  40% 24 Incorrect:  60% 3 questions not scored. 40 scored questions. More information about scoring 1. The main goal of<="" i=""> is to: Your Answer: Take economic measures that enh government institutions. Correct Answer: Use monetary and fiscal policy to  employment, and prices.   Incorrect. Stabilization policy describes both monetary and fiscal policy, the goals of which  are to smooth out fluctuations in output and employment and to keep prices as stable as  possible. 2. Delays in the economy’s response  to stabilization policies are called: Your Answer: The non-synchronization of activis Correct Answer: Time lags.   Incorrect. Delays in the response of the economy to stabilization policies are called time  lags.
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3. A leading critic of stabilization policy  that likened government attempts to  stabilize the economy to a “fool in  the shower” is: Your Answer:   Correct. In Friedman’s view, the government is constantly behaving like the fool in the  shower, stimulating or contracting the economy at the wrong time. 4. Refer to the figure below. Other  things equal, which path is more  desirable?   Your Answer: Neither path is preferred to the oth Correct Answer: Path  B.   Incorrect. Path A is less stable—it varies more over time—than path B. Other things being  equal, society prefers path B to path A. 5. Refer to the figure below. Which of  the following policies could explain  the jump from point  D  to point  F’  in  the graph below?
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Your Answer: Discretionary policies of any sort, contractionary, will cause that dev Correct Answer: Expansionary monetary policy.   Incorrect. In this case, expansionary policy was used when the economy no longer  needed it. 6. Once economists and policy makers  recognize that the economy is in a  boom or a slump, it might take them  some time to put the desired policy  into place. This period of time is  called: Your Answer: The response lag. Correct Answer: The implementation lag.   Incorrect. The response lag is the time that it takes for the economy to adjust to the new  conditions after a new policy is implemented; the lag that occurs because of the operation  of the economy itself. 7.
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Chapter_28 - YourResultsfor:&quot;SelfStudyQuiz&quot;...

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