Chapter11ReviewQuestions - ECN 211 Fall 2009 Review Questions Chapter 11 1 The Laffer curve belongs to which of the following schools of macroeconomic

Chapter11ReviewQuestions - ECN 211 Fall 2009 Review...

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ECN 211: Fall, 2009Review Questions Chapter 11____1.The “Laffer curve” belongs to which of the following schools of macroeconomic thought?a.Keynesian.b.Supply-side.c.Demand management.d.Classical.____2.In Keynesian theory, which of the following would be an appropriate discretionary fiscal policy to use when the economy is in a recession?____3.Nondiscretionary fiscal policy tends to reduce fluctuations in real GDP because:____4.The Laffer curve shows the relationship between:____5."Tax cuts, by providing incentives to work, save, and invest, will raise employment and lowerthe price level." This argument is made by the:a.Keynesian economists.b.supply-side economists.c.classical economists.d.monetarists.____6.Unemployment insurance payments act as an automatic fiscal stabilizer by:____

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