Ec2050 Chapter 8 Quiz

Your quiz has been submitted successfully.Question 12 / 2 pointsThe Classical macroeconomic model proposes thatA) markets work efficiently to produce the best macroeconomic outcomes.B) changes in the quantity of money are critical in driving economic growth.C) government intervention is required to help the economy reach its potential.D) real GDP equals potential GDP as long as inflation equals zero.E) socialism produces the most efficient economic outcomes for a society.Question 22 / 2 pointsThe Keynesian macroeconomic model states thatA) markets work efficiently to produce the best macroeconomic outcomes.B) the economy is fairly stable.C) the economy is inherently unstable and government intervention is required to maintain continued economic growth.D) changes in technology generate business cycles.E) fluctuations in the quantity of money are responsible for most economic recessions.Question 32 / 2 pointsThe Monetarist model expands the Keynesian model by proposing thatA) decreases in the growth rate of the quantity of money trigger expansions by controlling inflation.B) the government should lower taxes promote economic growth.C) decreases in the quantity of money lead to higher interest rates.D) markets should be left alone to determine the optimal outcome.E) decreases in tax rates generate higher consumption.Question 42 / 2 pointsThe