during recessions investment 1.falls by a larger % than GDP 2.falls by about the

Question

during recessions investment
1.falls by a larger % than GDP
2.falls by about the same % as GDP
3.falls by a smaller % than GDP
4. falls but the % change is sometimes much larger and sometimes much smaller

which part of real GDP fluctuates most over the course of the business cycle?
1.consumption expenditure
2.government ex
3.investment ex
4.net exports

which of the following generates the greatest amount of disagreement among economists?
1.increases in the money supply shift aggregate demand to the right
2.in the long run increase in the money supply increases prices but not output
3.recessions are associated with decreases in consumption investment and employment
4.government should use fiscal policy to try and stabilize the economy

which of the following policies would someone who wants the government to follow an active stabilization policy recommend when the economy is experiencing unemployment above the natural rate.
1.decrease the money supply
2.increase government expenditures
3.increase taxes
4.all the above are correct

Explanation / Answer

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during recessions investment
1.falls by a larger % than GDP
2.falls by about the same % as GDP
3.falls by a smaller % than GDP
4. falls but the % change is sometimes much larger and sometimes much smaller

which part of real GDP fluctuates most over the course of the business cycle?
1.consumption expenditure
2.government ex
3.investment ex
4.net exports

which of the following generates the greatest amount of disagreement among economists?
1.increases in the money supply shift aggregate demand to the right
2.in the long run increase in the money supply increases prices but not output
3.recessions are associated with decreases in consumption investment and employment
4.government should use fiscal policy to try and stabilize the economy

which of the following policies would someone who wants the government to follow an active stabilization policy recommend when the economy is experiencing unemployment above the natural rate.
1.decrease the money supply
2.increase government expenditures
3.increase taxes
4.all the above are correct

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