Attempts to use activist policies to stabilize the economy can be counter-productive:
a. If policy makers do not correctly estimate the natural rate of real output.
b. If policy makers misestimate the lags involved in the process
c. If policy makers forecast inaccurately.
d. In all of the above cases.
d
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Banks keep ________ of deposits as reserves because on a typical day withdrawals are ________ deposits
A) more than 100%; much greater than B) exactly 100%; about the same as C) less than 100%; about the same as D) less than 100%; much greater than
A common resource is best described as a resource where
A) there is a positive externality in consumption. B) there is a negative externality in consumption. C) there is a positive externality in production. D) there is a negative externality in production.
Average indexed monthly earnings are derived from the worker's earnings history and determine the primary insurance amount (PIA).
A. True B. False C. Uncertain
Which of the following is one common criticism of capitalism?
a. Poor product quality and little product diversity. b. Inefficiency of nationalized industries. c. Inability to adjust quickly to changing economic conditions. d. Inadequate environmental protection.