Questions from General Economics

Q: Why are some economists against a target of zero inflation?

Why are some economists against a target of zero inflation?

Q: Stagflation is caused by a. a leftward shift in the

Stagflation is caused by a. a leftward shift in the aggregate-demand curve. b. a rightward shift in the aggregate-demand curve. c. a leftward shift in the aggregate-supply curve. d. a rightward shift...

Q: Some economists say that the government can continue running a budget deficit

Some economists say that the government can continue running a budget deficit forever. How is that possible?

Q: Some income from capital is taxed twice. Explain.

Some income from capital is taxed twice. Explain.

Q: Approximately how long does it take a change in monetary policy to

Approximately how long does it take a change in monetary policy to influence aggregate demand? a. one month b. six months c. two years d. five years

Q: According to traditional Keynesian analysis, which of the following will increase

According to traditional Keynesian analysis, which of the following will increase aggregate demand the most? a. $100 billion increase in taxation b. $100 billion decrease in taxation c. $100 billion i...

Q: Advocates for setting monetary policy by rule rather than discretion often argue

Advocates for setting monetary policy by rule rather than discretion often argue that a. central bankers with discretion are tempted to renege on their announced commitments to low inflation. b. centr...

Q: Which of the following is NOT an argument for maintaining a positive

Which of the following is NOT an argument for maintaining a positive rate of inflation? a. It permits real interest rates to be negative. b. It allows real wages to fall without cuts in nominal wages....

Q: Throughout U.S. history, what has been the most

Throughout U.S. history, what has been the most common cause of substantial increases in government debt? a. recessions b. wars c. financial crises d. tax cuts

Q: Advocates of taxing consumption rather than income argue that a.

Advocates of taxing consumption rather than income argue that a. a consumption tax is a better automatic stabilizer. b. taxing consumption does not cause any deadweight losses. c. the rich consume a h...