Under fiscal stabilization policy in the New Keynesian model, after a negative shock to output,
A) the government increases expenditures and the central bank increases the money supply.
B) the government increases expenditures and the central bank decreases the money supply.
C) the government decreases expenditures and the central bank increases the money supply.
D) the government decreases expenditures and the central bank decreases the money supply.
A
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From Elizabeth I to George III, England strongly influenced the institutional structure of colonial America. This influence is realized today on which of the following fronts?
(a) Private property rights (b) The role of international trade and finance in the U.S. economy (c) Population growth through immigration (d) All of the above
Thirsty Thelma owns and operates a small lemonade stand. When Thelma is producing a low quantity of lemonade she has few workers and her equipment is not being fully utilized. Because she can easily put her idle resources to use,
a. the marginal cost of an extra worker is large. b. the marginal cost of one more glass of lemonade is smaller than if output were high. c. the marginal product of an extra worker is small. d. her lemonade stand is likely to be crowded with workers.