Great Recession and Great Depression were similar except Group of answer choices Stock Market crash High Unemployment Role of the Fed Bad loans by banks

Q: Which of the following about government debt is true?     it is controlled by the Federal Reserve…

A: Like most consumers, governments even have debts, which increases annually by the quantity of the…

Q: According to the supply-side economics principles promoted by President Ronald Reagan, economic…

A: The supply side economics is centered towards the aggregate supply and factors affecting the supply…

Q: If aggregate demand increases; while aggregate supply remains the same: Group of answer choices…

A: Demand-pull and cost-pull inflation:- Whenever demand grows to an extent that manufacturing cannot…

Q: The government controls economic policy through the fed, though the fed is independent from the…

A: The economy involves many agents which are the producers and the consumers and the government. There…

Q: The Federal Reserve generally uses ________ to implement monetary policy.   government spending…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: In the late 1960s, Milton Friedman and Edmund Phelps argued that a. the trade-off between…

A: Edmund Phelps and Milton Friedman separately confronted the basic concepts at the peak of the…

Q: If consumer confidence falls, then aggregate demand shifts   a. left, raising the inflation rate…

A: Answer to the question is as follows:

Q: Economists who are skeptical of the Fed's ability to fine tune the economy argue that lags in the…

A: Economists argue that is central banks are unable to respond to future crisis as it is difficult to…

Q: Which of these are characteristics of the economy that led to the Crash of 1929?     New roads and…

A: These are characteristics of the economy that led to the Crash of 1929.  More companies offer…

Q: Milton Friedman argued nearly all economic fluctuations were caused by Multiple Choice   sticky…

A: The correct option is money supply. Milton Friedman argued nearly all economic fluctuations were…

Q: Q. 2 Using the aggregate demand and aggregate supply model, explain the effects of the following on…

A: A fall in aggregate demand shifts the aggregate demand curve to the left, while a rise in aggregate…

Q: The long run aggregate supply curve (LRAS) has a verticle slope indicating that changes in the price…

A: Vertical LRAS implies that firms produce natural level of output in the long run.

Q: Firms require capital to invest in productive opportunities. The best firms with the most profitable…

A: A monetary policy that brings down the rate of (i)interest and invigorates acquiring is known as an…

Q: Banks follow the Fed’s lead to influence the economy and prevent a financial downturn? True or false

A: Fed is the supervisor of all the banks in the nation.

Q: Central banks:

A: Central banks are the apex banks of nation which control the commercial banks existing in the…

Q: Assuming prices and output are somewhat flexible, an increase in worthless government spending will…

A: Government spending is a component of Aggregate Demand. With the increase in Government spending (…

Q: Which of the following statements is most accurate about the Fed's zero interest rate policy (ZIRP)?…

A:

Q: How will the following affect (increase or decrease) the price level (in the long run)? (a)…

A: In an economy, long-run equilibrium is obtained at which aggregate demand and aggregate supply…

Q: The economy's unemployment rate is 2% and the inflation rate is 18%. The most appropriate policy for…

A: As we know that Phillips curve shows the relationship between inflation and Unemployment rate . And…

Q: The Fed's monetary policy strategy that focuses on achieving price stability is known as: A. Money…

A: Monetary policy strategies focus on achieving  macroeconomic stability through price stability,…

Q: The Fed can increase the money supply by conducting open market operations with member banks.   To…

A: The open market operation involves buying and selling of government bonds and securities by Fed.…

Q: The natural rate of unemployment   a. is constant over time.   b. does not depend on the rate at…

A: Unemployment is the situation where the workers who are willing to and able to work but unable to…

Q: his is not a writing assignment, this is a multiple-choice question In their effort to get the U.S.…

A: Quantitative easing (QE) is an unconventional monetary policy tool which the central bank use when…

Q: conservative" central banker cares   Select one:   A.   less about inflation and more about…

A: When talking about Central Bank, it can be said that it is different from other banking institutions…

Q: The Fed increases money supply during routine open market operations by Select one: a. Issuing new…

A: Open market operations: It is one of the tools of monetary policy, through which the federal reserve…

Q: In their effort to get the U.S. economy out of the Great Recession of 2008-2009, Federal Reserve…

A: The fiscal and monetary policies are used by the governments to achieve certain economic goals. The…

Q: Why do we care about price stability ? Group of answer choices   All of the options. It is one of…

A: Price Stability : Price Stability can be defined as that level of prices in the economy when the…

Q: There is no long-run trade-off between inflation and output because: Group of answer choices…

A: A.W Phillips developed the concept of Phillips curve. This curve says that there is an inverse…

Q: In the long run, technological progress Answer and increases in the money supply both make the price…

A: Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: 18)The top policy goal for Paul Volcker when he became chairman of the Federal Reserve's Board of…

A: 18.Answer is (e) Inflation during 1979 had reached 14%.Paul volcker wanted to fight inflation,which…

Q: Monetary policy set by the Federal Open Market Committee (FOMC) is implemented through the: Boston…

A: The actions by the monetary authorities (central bank) of a nation, to either expand or tighten the…

Q: Which of the following is the impulse in the Keynesian business cycle A change by the Fed in the…

A: In Keynesian business cycle, impulse is firms expectations.

Q: Increase in interest rates causes the supply curve to shift. Monetary expansion causes a decrease in…

A: In the loanable funds market, money supply implies the availability of money to lend and money…

Q: MULTIPLE CHOICE! ONLY answer! NO explanation! 1. If the inflation rate tends to go up, then which…

A: Option A ie Open market sale which will increase interest rates and decrease money supply When…

Q: When the United States economy goes through a period of extended growth, the economy is said to be…

A: The inflation is the increase in the general price level of goods and services. Some level of…

Q: Federal funds are Loans by the Fed Deposits in the Fed Loans between banks Both (a) and (b) Both (b)…

A: The surplus reserves deposited by the commercial banks or any other financial institutions at…

Q: The New Deal was created to counter the effects from: Group of answer choices hyperinflation. the…

A: When talking about the imposition of The New Deal, it was the set of new programs implemented by the…

Q: An increase in interest rates by the Fed based on a given and unchanged policy reaction function…

A: An increase in interest rate without the policy change would cause a movement on the aggregate…

Q: An increase in aggregate demand, for a given short-run aggregate supply curve, should lead to which…

A: Philips curve shows inverse relationship between inflation and unemployment.

Q: A student who cashes a check at the student union in order to go shopping illustrates an example of…

A: In financial hypothesis, explicitly Keynesian financial aspects, speculative demand is one of the…

Q: Increases in the rate of inflation Select one: a. Always coincide with a decrease in the…

A: Inflation rate means when prices of good continues rising that is called Inflation.

Q: nflation targeting focuses on setting a specific level of money supply that shall result to a…

A: Answer to the question is as follows:

Q: Suppose that, in an attempt to combat severe inflation, the government decides to decrease the…

A: How inflation happens? The contradictory phase in economy a situation happens when there is…

Q: When the Fed buys bonds (or bond options) on a larger scale (than before) from private banks,…

A: Open market operations are one of the tools that the Fed uses to manage the money supply across the…