A preannounced contractionary money policy is more likely to create unemployment when people have rational, rather than adaptive, expectations
a. True
b. False
Indicate whether the statement is true or false
False
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Gross national product, GNP, of the United States is the market value of all final goods and services
A) consumed by citizens of the United States anywhere in the world. B) consumed within the United States. C) produced within the United States. D) produced by citizens of the United States anywhere in the world.
Which of the following was NOT considered to have been a drawback of the pre-1914 gold standard?
A) It sometimes led to inflation, which several times in the late nineteenth century caused recessions in the United States. B) Countries had little control over their domestic monetary policies. C) Countries with trade deficits experienced deflation. D) Changes in the world money supply were strongly influenced by gold discoveries.
What stage of the business cycle immediately follows the trough?
a. Peak. b. Expansion. c. Recession. d. Depression.
The maximin criterion suggests that social policy should
a. expropriate the factors of production from the capitalist class. b. ensure an equal distribution of income. c. elevate the well-being of those at the bottom of the income distribution. d. elevate the well-being of all workers.