difference between real GDP and potential GDP – Hire Academic Expert

The difference between real GDP and potential GDP is known as the: Select one: O O a. unemployment gap. b. budget deficit. O O c. output gap. d. price gap. Who gains when there is unexpected deflation? Select one: 0 a. borrowers O b. real-asset owners, borrowers, and lenders O c. lenders O d. real-asset owners The political business cycle refers to policies that: Select one: O a. keep the economy on a constant growth path. O b. slow down the economy in election years. O C. run surpluses in election years. O d. speed the economy up in election years. Most economists today believe that: Select one: 0 a. the federal government should always balance its budget. O b. the Federal Reserve should be abolished. O c. the federal government should not seek to balance the budget annually, but let it function as an automatic stabilizer. O d. fiscal policy can decrease the unemployment rate below the natural rate of unemployment. The Great Moderation consensus about macroeconomic policy is that: Select one: O a. expansionary monetary and fiscal policies are both effective in the short run but not in the long run. O O b. expansionary monetary and fiscal policies can both reduce unemployment in the long run. c. only monetary policy works against recessions, but fiscal policy is effective only in the long run. O d. discretionary monetary and fiscal policies are effective in the short run and in the long run.

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