Purchase Solution

Phillips Curve Multiple Choice

Not what you're looking for?

Ask Custom Question

I'm requesting assistance with the below questions in order to prepare for an exam. The course is "Macroeconomics" author: Robert J. Gordon 11th edition text.
I'd appreciate any assistance with these questions?

17) Supply siders argue that policies pursued by the Reagan administration after 1981 undermined the effect of the 1981 tax cuts. Which of the following policies has been cited by supply siders?

a) The minimum wage was increased
b) Trade protectionist legislation was passed
c) Government expenditures decreased along with the decrease in revenues
d) Some of the incentives to business investment were reversed

19) A cut in income taxes tends to

a) Permanently shift both short-run Phillips Curve and aggregate demand
b) Temporarily shift the short-run Phillips Curve and to permanently increase aggregate demand
c) Permanently shift the short-run Phillips Curve and to temporarily increase aggregate demand
d) Temporarily shift both the short-run Phillips Curve and aggregate nominal demand

21) According to Gordon, fiscal policy â??is severely flawed as a means of controlling the economy over the short-runâ? because of

a) the effects of temporary tax policy changes are unpredictable
b) the effects of temporary tax policy changes are small
c) the long time required for Congressional debate
d) All of the above

Purchase this Solution

Solution Summary

Multiple choice questions related to shifts in the Phillips Curve

Solution Preview

17) Supply siders argue that policies pursued by the Reagan administration after 1981 undermined the effect of the 1981 tax cuts. Which of the following policies has been cited by supply siders?

d) Some of the incentives to investment were reserved

The tax cuts related to business investment ...

Purchase this Solution


Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.