When the effects of a more expansionary macroeconomic policy are quickly and accurately anticipated, the policy will
a. increase inflation without reducing unemployment.
b. increase unemployment while exerting little impact on inflation.
c. decrease unemployment while exerting little impact on inflation.
d. fail to exert a significant impact on either unemployment or inflation.
A
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Employers engaging in ________ try to enhance their profits
A) psychological bias B) moral discrimination C) statistical discrimination D) taste-based discrimination
The systemic costs and burdens that inflation imposes upon a society are almost entirely the result of
A) government price controls. B) inability to predict its rate and timing. C) the fact that no one can ultimately gain from higher prices because everyone is a consumer. D) the lag between the rise of wage costs and the subsequent rise of prices. E) the lag between the rise of prices and the subsequent rise of wages.
A change in all of the following variables will change the market demand for a product except
A) the price of the product. B) tastes. C) income. D) population and demographics.
Which of the following would cause the aggregate demand curve to decrease, ceteris paribus?
a) An increase in income taxes. b) An increase in the value of the stock market. c) Strong performance of foreign economies. d) A decrease in interest rates.