According to the New Classical Macroeconomists,the Only Government Policy Changes

question 21

Multiple Choice

According to the new classical macroeconomists,the only government policy changes that can have a substantial impact on output or employment are those that

• A) are announced well in advance.
• B) involve large budget deficits.
• C) are discretionary, rather than adhering to a rule.
• D) are unanticipated by businesses and households.
• E) are designed to control wages and prices.

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Definitions:

Max Weber

A German sociologist, philosopher, and political economist known for his theory on the Protestant ethic and his ideas on bureaucracy.

World Systems Theory

A multidisciplinary, macro-scale approach to world history and social change that suggests there is a world economic system in which some countries benefit while others are exploited.

Dependency Theory

The global theory maintaining that industrialized nations hold less-industrialized nations in a dependent relationship that benefits the industrialized nations at the expense of the less-industrialized ones.

Modernization Theory

A theory that suggests societies progress through a series of stages toward stability, democracy, and prosperity, often through technology and industrialization.