Question

- + / Fit to page Fit to page 16. According to econometric studies of the U.S. economy, the macroeconomia short run" during which real output increases following an increase in aggregate demand is usually how long? A One to seven days B. One to three months C. One to two years D. Five to ten years 17. A situation in which monetary po Interest rates approach zero is known A. The nominal anchor B. A liquidity trap C. A deflationary depressive shock D. Hyperdeflation 18. If the effective multiplier for fiscal policy is 2 how much change in government purchases would be required to close a $500 billion negative output gap, other things being equal? A. A $250 billion increase BA $1 trillion increase CA $1 trillion decrease DA $250 billion decrease 3 • 19. With trade, the production possibilities for two nations A outside their consumption possibilities B. inside their consumption possibilities C. at a point equal to the world production D. none of the above 20. The use of fiscal stimulus to fight a recession long? A Several weeks B. One to three months C. A year or two at least D. Several decades lags that typically total how

Answer 1

Solution: 6. According to the econometric studies of the U.S economy, the macroeconomic short run". during which real output increases following an increase in aggregate demand is usually how long? Hence option 'A' ll One to seven days is correct answer. A situation in which monetary policy loses its offictiveness as nominal interest rate approach zero is known as.. Hence option 'ga A liquidity trap" is I correct answer. 18. If the effective multiplier for fiscal policy is 2, how much change in government purchases would be required to Close à $500 billion negative output gap, other things being equal? Hence aftio D' a $250 billion decreases | is correct answer. . With teade the production po sidoidities for two - nation lie. Hence option chat a boint equal to the world 1 poroduction possibilities curve is correct. 29. The use of fiscal stimulus to fight a recession is subject to inside and outside lages that typically total how long ? ? Hence option C a A year or two at least is correct ohswere