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APE U5 review 5 Flashcards | StudBud

Explore/APE U5 review 5

"crowding out" results from

Demand side policies do NOT change

APE U5 review 5

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Questions 6

Answers

1
Demand side policies do NOT change
The natural rate of unemployment
The level of output
The budget balance
The price level
2
"crowding out" results from
a rightward shift in the supply of loanable funds
a rightward shift of the demand for loanable funds
a leftward shift of the demand for loanable funds
a leftward shift of the supply of loanable funds
3
A “liquidity trap” is directly connected to:
The impact of existing debt on fiscal policy
Over-extension of credit/loans to consumers
The zero bound on interest rates
Public confidence in government bonds
4
An economy is above long-run equilibrium. Which would NOT be advisable demand-side policy?
Buying bonds
A decrease in government spending
An income tax increase
5
A negative supply shock will _____ the Phillips curve and could be addressed with ____.
Move right along, decreased taxes
Create an upward shift of, decreased taxes
Create a downward shift of, expansionary monetary policy
Move left along, decreased government spending
6
An expansion of the money supply is likely to do all of the following EXCEPT:
Increase interest rates
Increase price levels
a.Increase aggregate demand
Increase the employment rate