The conclusion that the economy has price flexibility, wage flexibility, and perfectly competitive markets justifies
A. passive policymaking.
B. active policymaking.
C. rational policymaking.
D. none of these.
Answer: A
You might also like to view...
Interest deductibility does not provide an incentive for debt finance.
A. True B. False C. Uncertain
If the price of a digital SLR camera in Japan is ¥55,000 . and the exchange rate is 93 ¥/$, calculate the dollar price of the digital SLR camera in Japan
a. $603.29 b. $397.48 c. $886.82 d. $591.40 e. $101
If the Fed moves the economy upward along the short-run Phillips curve from an initial inflationary equilibrium, what is happening?
a. Unemployment is rising above the natural rate, output is decreasing, and inflation is decreasing. b. Unemployment is falling below the natural rate, output is decreasing, and inflation is increasing. c. Unemployment is rising above the natural rate, output is increasing, and inflation is decreasing. d. Unemployment is falling below the natural rate, output is increasing, and inflation is increasing. e. Unemployment is falling below the natural rate, output is increasing, and inflation is decreasing.
If the underground economy is sizable, then GDP will
a. understate the economy's performance. b. overstate the economy's performance. c. fluctuate unpredictably. d. accurately reflect this subterranean activity.