Policymakers who believe that the costs of unemployment are very high will tend to favor which of the following during a recessionary gap?
A. Moderate fiscal stimulus, no monetary stimulus
B. Fiscal and monetary tightness
C. Moderate monetary stimulus, fiscal tightness
D. Strong fiscal and monetary stimulus
Answer: D
Economics
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Keynesian macroeconomic theory has been summarized as the idea that
A. supply creates its own demand. B. demand creates its own supply. C. demand quickly adjusts in order to accommodate changes in the quantity of output. D. full employment is assured in long-run equilibrium.
Economics
The price ceiling
A. is binding. B. causes a shortage. C. causes the quantity demanded to exceed the quantity supplied. D. All of the above are correct.
Economics