Why are many economists skeptical of the Fed's ability to fine tune the economy?
A) Monetary policy only affects output in the long run.
B) Lags in policy make it difficult to properly time policy.
C) Fiscal policy can be implemented more quickly than monetary policy.
D) Monetary policy does not have any effect on output.
B
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Using Figure 3 below, suppose that the economy was at Y2. This level of GDP would be considered:
A. inflationary.
B. recessionary.
C. a long run level of output.
D. unsustainable over time.
Curly and Moe are considering living alone or being roommates and splitting the rent for the next twelve months. If they live alone, they each rent a one bedroom, one bath apartment for $500 per month, while if they are roommates, they can split a two bedroom, one bath apartment for $800 per month. The one difficulty they have is that Moe snores very loudly. Curly estimates the cost of poor sleep due to Moe's snoring at $150 per month. Moe could obtain a snore-eliminating device for $50 per month. Curly would be willing to pay ________ per month to eliminate Moe's snoring.
A. up to $150 B. nothing C. exactly $50 D. no more than $100
The cornerstone of antitrust policy in the United States is generally considered to be the Sherman Antitrust Act of 1890.
Answer the following statement true (T) or false (F)
A tendency for a good to come into favor with consumers because other consumers have chosen to buy the item is
A) price-leadership. B) a negative-sum game. C) positive market feedback. D) negative market feedback.