| Question | 5. In economics, the concept of active government intervention in the macroeconomy was first emphasized by a. supply side economists b. classical economists c. John Maynard Keynes d. rational expectations theory e. monetarists 6. Which school of thought is most likely to recommend that the Central bank announce a target inflation rate so that people will believe it and then act accordingly? a. Keynesian b. Monetarist C. Classical d. Rational Expectations e. Supply side 7. Which school of thought is most likely to recommend large tax cuts to improve productivity? a. Keynesian b. Monetarist c. Classical d. Rational Expectations e. Supply side 8. Which school of thought believes that the government cannot do much to influence the economy and that it should not interfere in the economy? a. Keynesian b. Monetarist c. Classical d. Rational Expectations e. Supply side 9. During periods of high growth and inflationary pressures, the Federal Reserve will likely A) decrease the money supply to decrease interest rates. B) decrease the money supply to increase interest rates. C) increase the money supply to decrease interest rates. D) increase the money supply to increase interest rates. 10. The economic impact of automatic stabilizers during inflationary periods is to A) decrease inflationary pressures. B) increase inflationary pressures. C) increase exports D) have no impact on inflation. |
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| Subject | economy |
