Expansionary policies are government stabilization policy actions intended to

Expansionary policies are government stabilization

This preview shows page 261 - 267 out of 305 pages.

106.Expansionary policies are government stabilization policy actions intended to increase: A. population. B. inflation. C. average labor productivity. D.planned spending. AACSB: Analytical Skills Blooms: Knowledge Frank - Chapter 21 #106 Learning Objective: 21-04 Show how a change in planned aggregate expenditure can cause a change in short-run equilibrium output and how this is related to the income expenditure multiplier. Section: Stabilizing Planned Spending: The Role of Fiscal Policy
Image of page 261

Subscribe to view the full document.

107.Contractionary policies are government stabilization policy actions intended to decrease: AACSB: Analytical Skills Blooms: Knowledge Frank - Chapter 21 #107 Learning Objective: 21-04 Show how a change in planned aggregate expenditure can cause a change in short-run equilibrium output and how this is related to the income expenditure multiplier. Section: Stabilizing Planned Spending: The Role of Fiscal Policy
Image of page 262
108.In the short-run Keynesian model, to close a recessionary gap of $2 billion dollars government purchases must be: AACSB: Analytical Skills Blooms: Understanding Frank - Chapter 21 #108 Learning Objective: 21-04 Show how a change in planned aggregate expenditure can cause a change in short-run equilibrium output and how this is related to the income expenditure multiplier. Section: Stabilizing Planned Spending: The Role of Fiscal Policy
Image of page 263

Subscribe to view the full document.

109.In the short-run Keynesian model, to close an expansionary gap of $5 billion dollars government purchases must be: AACSB: Analytical Skills Blooms: Understanding Frank - Chapter 21 #109 Learning Objective: 21-04 Show how a change in planned aggregate expenditure can cause a change in short-run equilibrium output and how this is related to the income expenditure multiplier. Section: Stabilizing Planned Spending: The Role of Fiscal Policy
Image of page 264
110.In the short-run Keynesian model where the marginal propensity to consume is 0.5, to offset a recessionary gap resulting from a $2 billion decrease in autonomous consumption, government purchases must be: A.increased by $2 billion.B. decreased by $2 billion.C. increased by $4 billion.D. decreased by $4 billion. AACSB: Analytical Skills Blooms: Understanding Frank - Chapter 21 #110 Learning Objective: 21-04 Show how a change in planned aggregate expenditure can cause a change in short-run equilibrium output and how this is related to the income expenditure multiplier. Section: Stabilizing Planned Spending: The Role of Fiscal Policy
Image of page 265

Subscribe to view the full document.

Image of page 266
Image of page 267
  • Fall '14
  • none

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes