Sec_All_Short_Answer_and_Essay_Ch_36_

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1、SubjectiveShortAnswer1. Whyisitdesirable,ifpossible,tousepolicytooffsettheeffectsofadecreaseinaggregatedemand?ANSWER:  Becauseadecreaseinaggregatedemandwastesresources.Unemploymentrisesandfactoriesareidle.POINTS:  1DIFFICULTY:  ModerateLEARNING OBJECTIVES

2、:  ECON.MANK.044-Debatetheuseofdiscretionarypolicytostabilizetheeconomy.TOPICS:  FiscalpolicyMacroeconomicpolicydebatesKEYWORDS:  BLOOM'S:KnowledgeCUSTOM ID:  001.36-SAE-MANK082. Someeconomistsarguethatpolicymakerscanusemonetaryandfiscalpolicytoreducethes

3、everityofeconomicfluctuations.Whataresomethingspolicymakerscandotoboosttheeconomywhenaggregatedemandisinadequatetoensurefullemployment?ANSWER:  Policymakerscanincreasegovernmentspending,cuttaxes,andexpandthemoneysupplytoboosttheeconomy.POINTS:  1DIFFICULT

4、Y:  ModerateLEARNING OBJECTIVES:  ECON.MANK.080-Determinetheshort-runandlong-runeffectsofamacroeconomiceventusingtheaggregatedemandandaggregatesupplymodel.TOPICS:  MacroeconomicmodelsAD-ASModelKEYWORDS:  BLOOM'S:ApplicationCUSTOM ID:  002.36-SAE-MANK083. 

5、Someeconomistsarguethatpolicymakerscanusemonetaryandfiscalpolicytoreducetheseverityofeconomicfluctuations.Whataresomethingspolicymakerscandowhenhigherinflationbecomesaconcern?ANSWER:  Policymakerscancutgovernmentspending,raisetaxes,andreducethemoneysupply

6、whenaggregatedemandisexcessive.POINTS:  1DIFFICULTY:  ModerateLEARNING OBJECTIVES:  ECON.MANK.080-Determinetheshort-runandlong-runeffectsofamacroeconomiceventusingtheaggregatedemandandaggregatesupplymodel.TOPICS:  MacroeconomicmodelsAD-ASModelKEYWORDS:  B

7、LOOM'S:ApplicationCUSTOM ID:  003.36-SAE-MANK084. Ifnetexportsfall,whatactionscouldacentralbanktaketostabilizetheeconomy?ANSWER:  Increasethemoneysupply.(Lowerinterestrates.)POINTS:  1DIFFICULTY:  ModerateTOPICS:  MonetarypolicyKEYWORDS:  BLOOM'S:Applicat

8、ionCUSTOM ID:  004.36-SAE-MANK08CopyrightCengageLearning.PoweredbyCognero.Page 195. Ifbusinessesbecomemorepessimisticaboutthefuture,whatfiscalpoliciescouldthegovernmenttaketostabilizetheeconomy?ANSWER:  Increasegove