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Recall the Application About the Effectiveness of the Obama Stimulus

Question 127

Multiple Choice

Recall the Application about the effectiveness of the Obama stimulus package on economic recovery to
answer the following question(s) .
-According to the Application, the Council of Economic Advisers used three different ways to evaluate the effectiveness of the stimulus package. These included all of the following EXCEPT


A) using statistical methods to suggest that both employment and economic growth were higher in the second and third quarters of 2009 then would have been predicted by statistical models.
B) using standard economic methods that measured the effectiveness of the tax increases and spending increases on the reduction of unemployment and on reversal of deflation in the economy.
C) using conventional economic models to estimate the effects of the stimulus-essentially assuming conventional multipliers for government spending and taxes.
D) comparing international experiences of countries that used different stimulus strategies and arguing that those countries that had the most ambitious programs of fiscal stimulus improved the most.

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