Economic growth 4 all of the above 2 the laws of the

Economic growth
4. All of the above
2. The laws of the Unites States do not specify how the government should solve the
problems in one
3. Decreasing aggregate demand:
4. All economists agree that the government can a ff ect the economy, they disagree on
whether or not the government should, and how they should do it
5. The use of the government’s taxing and spending power to influence the economy is called
() policy
1. Monetary
2. Industrial
3. Legislative
4. Fiscal
6. The classical economists would say that the best way for the government to help out
during a recession would be for it to do nothing
7. The interest rate the Fed charges banks to borrow from it is called the () rate
8. A Keynesian would () the () to fix the recession
9. The time it takes the government to recognize and/ or act on a recession is called a(n) ()
1. Pause
2. Lag
3. Reduction
4. Hesitation
10. If the government goes to borrow money and that interferes with private borrowers in need
of funds it is called

Sample Exam
1. () is the person who is thought as the creator of supply side economics
2. According to supply side theory, the Reagan and Bush tax cuts which targeted the rich will
() down to the poor and middle class, helping everyone eventually.
3. One legacy of supply side economics is that we now care about what variable in
macroeconomics that we did not before
1. Investment
2. Nominal wages
3. Worker productivity
4. Taxes
4. The Equation of exchange is () =()
6. The equation of exchange as interpreted by the person above says that increases in money
supply cause inflation and decreases in the money supply cause recessions.
7. The neio-classical () is the bringing together of classical and Keynesian theory into modern
economic theories.
8. New Keynesians economist blame recessions on:
1. Sticky wages and prices
2. Lack of spending
3. Supply shocks
4. E ff ective demand failures
9. New classical economists blame recessions on: 10. Ben bernake former chair of the federal reserve blames the recession of 2007 on too much
savings coming into the Unites States, mostly from China.
11. Both New Keynesians and New classical believe the economy works according to classical
theory in the long run
12. Federal Reserve Notes in the Us are:
1. Commodity money
2. Specie money
3. Fiat money
4. Regulated money
13. In 1776, the o ffi cial monetary system in the United States was based on 14. When banks can print their own money it is known as () banking