Author Question: Refer to Figure 27-5. In the dynamic model of AD-AS in the figure above, if the economy is at point ... (Read 83 times)

imanialler · **on:** Jun 29, 2018

Refer to Figure 27-5. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, Congress and the president would most likely pursue

A) contractionary automatic stabilizers.
B) expansionary fiscal policy.
C) contractionary fiscal policy.
D) expansionary monetary policy.
E) contractionary monetary policy.

Question 2

The Taylor rule predicted a federal funds rate which was ________ that set when Paul Volcker was chairman of the Fed, and a rate which was ________ that set when Arthur Burns chaired the Fed.

A) less than; equal to B) greater than; less than
C) greater than; equal to D) less than; greater than