If expectations are rational, how can government influence unemployment in a predictable way?
a. with the normal tools, used in the normal fashion
b. with fiscal policy; monetary policy will not work
c. with monetary policy; fiscal policy will not work
d. with surprise changes in policy only
d
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Which of the following would most likely cause a rightward shift in a demand curve?
a. a discovery about a product being made in sweat shops b. a recall of an automobile c. a celebrity promoting a sports drink d. an outbreak of E. coli in chicken
Victor currently produces nuts and bolts at point a in the figure. Victor's marginal cost of producing an additional nut is ________
A) 1 bolt per nut B) 1/2 bolt per nut C) 8/6 bolts per nut D) 8 bolts per nut
Which of the following is NOT an appropriate role for government to play in the economy?
A. Addressing externalities B. Promoting free speech in marketing C. Redistributing income D. Regulating markets
Tariffs and quotas on imported goods used as inputs in production shift the
A. AS curve to the left. B. AS curve to the right. C. AD curve to the right. D. None of the choices are correct.