The argument that when policy changes, people's behavior changes so that historical relationships between macroeconomic variables will no longer hold is known as
A) the Phillips curve.
B) the policy irrelevance hypothesis.
C) hysteresis.
D) the Lucas critique.
D
Economics
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The ratio of nominal GDP to money supply is referred to as:
A) velocity. B) inflation ratio. C) Fischer's ratio. D) price index.
Economics
In the Solow model, if f(k) = 2k0.5, s = 0.25, n = 0.05, and d = 0.2, what is the value of k at equilibrium?
A) 1 B) 2 C) 3 D) 4
Economics
Inelastic supply
What will be an ideal response?
Economics
In the United States during the Vietnam War era, as military spending increased
A) unemployment dropped to very low levels. B) frictional unemployment dropped, but cyclical unemployment increased. C) both frictional and cyclical unemployment increased. D) overall unemployment rates did not change.
Economics