To deal with the time inconsistency problem associated with monetary policy, some have suggested that
A) the head of the central bank be chosen by election.
B) the central bank implement expansionary monetary policy prior to election years.
C) elected officials should have a direct influence on the implementation of monetary policy.
D) all of the above
E) none of the above
E
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In the traditional Keynesian model, if the government cuts taxes, then
A) both consumption and real Gross Domestic Product (GDP) will increase. B) both consumption and real Gross Domestic Product (GDP) will decrease. C) consumption will increase but Gross Domestic Product (GDP) will decrease. D) consumption will decrease but Gross Domestic Product (GDP) will increase.
The demand for microwaves in a certain country is given by: D = 8,000 -30P, where P is the price of a microwave. Supply by domestic microwave producers is: S = 4,000 + 10P. If this economy opens to trade while the world price of a microwave is $50, how many microwaves will be imported or exported?
A. 3,000 exported B. 1,000 imported C. 2,000 exported D. 2,000 imported
The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
Other things constant, which of the following job characteristics would be most likely to result in a higher pay rate for the job?
a. The employer provides low cost child-care services on the premises. b. The job requires substantial amounts of stressful out-of-town travel. c. The job involves working in pleasant surroundings. d. The job is widely viewed as prestigious.