ECON 312 (UMBC) Final terms
Question and answers verified to pass
2025
Active fiscal policy has - correct answer Longer inside lag and shorter outside
lag
Active monetary policy has - correct answer Shorter inside lag and longer
outside lag
Active Stabilization - correct answer Fiscal and or monetary policy should be
changed based off short term fluctuations in output
Adaptive Expectations - correct answer the theory that people look at past
experience and gradually adapt their beliefs and behavior as circumstances
change
Automatic stabilizers - correct answer Policies that stimulate or depress the
economy when necessary without any inside lag
Fisher's Intertemporal Choice Model - correct answer Person's life is divided
into period 1 and 2. In period 1, person receives Y1 and consumes C1.
Savings(S) = Y1-C1. In period 2, person receives Y2 and consumes C2= Y2 +
(1+r)S
Lifetime consumption = Lifetime Income
Hysteresis - correct answer the theory that the natural rate of unemployment
can be changed by short run fluctuations of output and unemployment
Question and answers verified to pass
2025
Active fiscal policy has - correct answer Longer inside lag and shorter outside
lag
Active monetary policy has - correct answer Shorter inside lag and longer
outside lag
Active Stabilization - correct answer Fiscal and or monetary policy should be
changed based off short term fluctuations in output
Adaptive Expectations - correct answer the theory that people look at past
experience and gradually adapt their beliefs and behavior as circumstances
change
Automatic stabilizers - correct answer Policies that stimulate or depress the
economy when necessary without any inside lag
Fisher's Intertemporal Choice Model - correct answer Person's life is divided
into period 1 and 2. In period 1, person receives Y1 and consumes C1.
Savings(S) = Y1-C1. In period 2, person receives Y2 and consumes C2= Y2 +
(1+r)S
Lifetime consumption = Lifetime Income
Hysteresis - correct answer the theory that the natural rate of unemployment
can be changed by short run fluctuations of output and unemployment
