The proposed monetary rule that would specify how the Fed should respond to changes in GDP and inflation rates is called the:
A. Keynesian rule.
B. Friedman rule.
C. Taylor rule.
D. Lucas rule.
C. Taylor rule.
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Some economists argue that the productivity slowdown of the mid-1970s to the mid-1990s was due to changes in oil prices that
A) increased production costs, causing firms to reorganize production to conserve energy, which reduced output per worker. B) decreased production costs, causing firms to reorganize production to conserve energy, which reduced output per worker. C) increased production costs, causing firms to reorganize production to conserve energy, which increased output per worker. D) decreased production costs, causing firms to increase production, which reduced output per worker.
When a country experiences capital flight its interest rate
a. and net capital outflow rise. b. rises and net capital outflow falls. c. falls and net capital outflow rises. d. interest rate and net capital outflow fall.
Features of the labor market that are likely to cause structural unemployment include all of the following except:
A. unemployment compensation. B. minimum wage laws. C. labor unions. D. differences in the skills and experience of workers.
A point inside a production possibilities curve indicates
A) resources are not being used efficiently. B) resources are being used very efficiently. C) opportunity costs are constant. D) an output combination that is unobtainable with the current resource and technology levels