Answer the following statement(s) true (T) or false (F)
1.Economists who believe that, in the short run, discretionary monetary and fiscal policy can stimulate a recessionary economy with aggregate demand management are known as activists.
2.Expansionary fiscal policy is usually effective at correcting for negative supply shocks.
3.Between 1999 and 2004, inflation was low but housing prices were increasing very rapidly.
4.The use of payment contracts that automatically adjust for changes in inflation is known as indexing.
5.Indexing is an effective method for preventing rises in the inflation rate.
1.true
2.false
3.true
4.true
5.false
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Many macroeconomic variables a. fluctuate together and by different amounts
b. fluctuate together by the same amounts. c. never fluctuate together. d. fluctuate together about half of the time and by the same amount.
A futures contract is a contract in which the seller agrees to provide a given good to the buyer on a predetermined future date at an agreed-upon price
Indicate whether the statement is true or false