Answer to Question #125578 in Macroeconomics for Oko jen

Question #125578

6. The level of output that can be sustained in the long run is called …. Output (a) potential (b) projected (c) expected (d) possible
7. The basic Automatic Stabilizers is/are: (a) Transfer payments (b) Unemployment compensation (c) Income taxes (d) All of the above
8. The market price of bonds can fluctuate depending on …. (a) how many bonds were sold (b) who bought the bonds (c) the amount of coupon (d) the interest rate
9. If the economy is in a recession, the Central Bank could do all of the following except …. (a) Buy securities (b) Lower the Discount rate (c) Lower the Monetary Policy rate (d) Lower taxes
10. If the Aggregate Supply is vertical in the long run neither monetary policy nor fiscal policy has any effect on aggregate output (a) True (b) False

Expert's answer

Answers:

6. Potential

7. All of the above

8. Interest rates

9. Buy securities

10. True