Proponents Argued That Fiscal Stimulus Was Appropriate After the 2008

question 59

Multiple Choice

Proponents argued that fiscal stimulus was appropriate after the 2008 financial crisis because most major economies had _____ unemployment and _____ inflation.

• A)low; low
• B)low; high
• C)high; low
• D)high; high

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Definitions:

Monetarists

An economic philosophy highlighting the importance of government intervention in regulating the money supply.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, usually measured by GDP.

Money Supply

The total amount of money available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.

Aggregate Supply

The total supply of goods and services that firms in an economy are willing and able to sell at a given overall price level in a specified time period.