How do the hierarchical and dual mandates differ in terms of macroeconomic consequences?
What will be an ideal response?
A dual mandate implies more tolerance of inflation than a hierarchical mandate. Ceteris paribus, the creation and purchasing power of wealth receive more support from a hierarchical mandate. A dual mandate implies less tolerance of positive output gaps and more support for aggregate demand.
You might also like to view...
For effective price discrimination to occur, a seller must
a. be a pure monopolist. b. have large economies of scale and control over a key natural resource. c. face a horizontal demand curve for its product. d. be able to prevent consumers from reselling the product to other consumers.
The opportunity cost of something is:
A. a measure of the scarcity of the good. B. what you sacrifice to get the good. C. the price you pay for the good. D. what you are willing to pay for the good.
Over the last 100 years in the United States, unemployment reached its highest rate
A. in the 1930s. B. in the 1970s. C. in late 2010s. D. in the 1920s.
The EPA estimates that only 10 percent of the current air and water pollution can be eliminated with known and available technology.
Answer the following statement true (T) or false (F)