What is the Council of Economic Advisers?
What will be an ideal response?
The Council of Economic Advisory is responsible for assisting and advising the president on economic affairs. One of its principal responsibilities is to prepare an annual report for the president that is submitted to Congress that describes the state of the economy and recommends economic policies to achieve full employment, control inflation, and encourage economic growth.
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The Taylor rule says that the ________, the lower the federal funds rate
A) higher the volume of bank reserves B) higher the inflation rate C) lower the output gap D) higher the supply of money
Suppose you cannot buy information that completely removes the uncertainty from a business decision that you face, but you could buy information that reduces the degree of uncertainty
Based on the discussion in this chapter, the value of this partial information could be determined as the: A) expected outcome under complete certainty minus the expected outcome under the partial information case. B) expected outcome under the partially uncertain case minus the expected outcome under the completely uncertain case. C) utility of the partially certain case minus the utility of the completely certain case. D) We cannot determine the value of information under partial certainty.
Which of the following will most likely occur during the expansionary phase of a business cycle?
a. Real GDP rises, and unemployment falls. b. Real GDP declines, and inflation rises. c. Interest rates rise, and the number of business failures rise. d. Inflation rises, and employment falls.
The additional revenue obtained by a firm when it hires an additional worker, holding other inputs constant, is
A. the marginal cost of labor. B. the marginal revenue product of labor. C. equal to total revenue divided by the number of workers. D. the marginal physical product of labor.