Question 1

Economist John Maynard Keynes is famous for saying, "In the long run, we are all dead." This quote refers to the:

Accepted Answer

A)   length of time it can take the economy to recover back to potential GDP without policy intervention.
B)   inflation that results from government intervention in the economy.
C)   fact that no policy can affect the long-run equilibrium.
D)   notion that all policy options to intervene in the economy are equally sub-optimal in the long run.E) A) and B)
F) A) and C)

Question 2

The budget deficit may increase when:

Accepted Answer

A)   tax revenues decrease and government spending increases.
B)   interest rates and unemployment change.
C)   household spending increases and firm spending decreases.
D)   tax revenues and government spending decrease.E) B) and C)
F) All of the above

Exam 13: Fiscalpolicy

The budget deficit may increase when:

Correct Answer
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Economist John Maynard Keynes is famous for saying, "In the long run, we are all dead." This quote refers to the:

Correct Answer
verified

Exam 13: Fiscalpolicy

The budget deficit may increase when:

Correct AnswerverifiedShow Answer

Economist John Maynard Keynes is famous for saying, "In the long run, we are all dead." This quote refers to the:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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