This is a true statement about monetary and fiscal policy: The Medicare program is fiscal policy and the fed funds rate is monetary policy. Both are run by the Federal Reserve. Unemployment insurance is fiscal policy and defense spending is monetary policy. Monetary policy targets income inequality while fiscal policy targets inflation. This is an example of the government sponsoring “uneconomic” economic activity: The National Park Service Corporate income taxes Banking regulation Making trade agreements with other countries

This is a true statement about monetary and fiscal policy: The Medicare program is fiscal policy and the fed funds rate is monetary policy. Both are run by the Federal Reserve. Unemployment insurance is fiscal policy and defense spending is monetary policy. Monetary policy targets income inequality while fiscal policy targets inflation. This is an example of the government sponsoring “uneconomic” economic activity: The National Park Service Corporate income taxes Banking regulation Making trade agreements with other countries

Macroeconomics: Principles and Policy (MindTap Course List)

13th Edition

ISBN:9781305280601

Author:William J. Baumol, Alan S. Blinder

Publisher:William J. Baumol, Alan S. Blinder

Chapter17: The Trade-off Between Inflation And Unemploy

Section: Chapter Questions

Problem 8DQ

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Similar questions

The rational expectations theory suggests that as the public learns more about the effects of fiscal and monetary policy, in the pursuit of their own self interest they take actions that make Group of answer choices monetary policy more powerful than fiscal policy. fiscal policy more powerful than monetary policy. fiscal and monetary policy ineffective in achieving their stated aims. fiscal and monetary policy effective in achieving their stated aims.
Fiscal policy is usually used during recessions because it is takes less time to implement than monetary policy. True or false
Long run monetary neutrality implies that fiscal policy can only change output, not prices, in the long run monetary policy can change only nominal, not real, variables in the long run monetary policy can only change output, not prices, in the long run fiscal policy can change only real, not nominal, variables in the long run
Differentiate between monetary and fiscal policy.
Explain what kind of fiscal policy and what kind of monetary policy are likely to reduce GDP.
What is the difference between fiscal and monetary policy? What fiscal and monetary steps can the government and the central bank undertake during times of recession to help the economy? What are the pros and cons of fiscal and monetary policy?
Differentiate between fiscal and monetary policy in brief.
What is the best combination of fiscal policies and monetary policies for a country like Japan whose price levels are increasing while unemployment is being controlled? a. Decrease taxes, increase government spending and increase money supply b. Decrease taxes, decrease government spending and decrease money supply c. None of these choice is correct d. Increase taxes, decrease government spending and decrease money supply
What is the difference between monetary policy and fiscal policy? Provide at least three examples of monetary policy? Provide at least three examples of fiscal policy? Give an example of monetary and fiscal policy from the past year in response to Covid?
Select the following government actions that would be considered part of fiscal policy. The government borrows money from the Federal Reserve system to increase the money supply. The government lowers taxes in order to stimulate the economy. Wages rise due to a good economy. The Federal Reserve lowers interest rates to stimulate the economy.
Fiscal policy refers to the A. manipulation of the money supply in order to increase the amount of cash that the government holds. B. adjustment of government spending and taxes in order to achieve certain national economic goals. C. adjustment of national income data to account for price level changes. D. government policy that aims at raising the market prices of certain good
Which of the following statements are FALSE? (a) When the government prints money to buy goods and services the resulting inflation is a form of tax, since people will not have to pay more for their goods and services than before. (b) An effective fiscal policy macroeconomic stimulus should aim to replace private spending with public (government) spending. (c) To be effective a fiscal policy macroeconomic stimulus should have temporary increases in spending and permanent tax cuts. (d) The paradox of thrift is that the increase in saving during a recession because people postpone major purposes prolongs the recession and thus is not good for the economy, while normally saving grows the economy.