Economic and social policy apuntes

Wich is not a goal of economic policy?. Increase mortagages payments. Economic growth. Full employment. Price stability.

Public goods and services are. All goods and services paid for by government. Goods and services provided by publicly held companies. Goods and services thar would not be adequately provided by the market. Goods and services that are available to the public.

Which of the following is a reason for sticky wages?. Fiscal policy. Monetary policy. Aggregate demand. Long-term contracts. All of the above.

According to keinesian what should the government do in response to recession?. Cut government spending. Increase government spend. Increase interest rates. Expand the money supply. A and D. B and D.

What are problems with Keynesian business cycle theory?. It does not predict stagflation. Falling aggregate demand may be a symptom, not a cause, of recession. Wages are only sticky during recessions. A and B. B and C.

Establisihing and enforcing clearly defined property rights is an example of government. Providing a social and legal framework. Income redistribution. Macroeconomic stabilization. Public goods provision.

Smoke from a factory drops ash all over your car. Government economic in this csase would be. Correct a negative externality. Provision of a public good. Income redistribution. Macroeconomic stabilization.

Which of the following is not a component of aggregate demand?. Interest rates. National income. Aggregate supply. Potential GDP.