When it comes to active policy making most economists agree that
A) active policy making should be used over passive policy making.
B) it is unlikely that active policy making will have any long term effects on the economy.
C) it is likely that active policy making will have long term effects on the economy.
D) it will lead to long term shocks in the system.
B
You might also like to view...
When people are holding money in excess of their demand for real money balances ________
A) the nominal interest rate will fall B) they increase their purchases of goods and services C) the central bank buys bonds to correct the imbalance D) all of the above E) none of the above
When aggregate demand exceeds current output, Keynesian analysis indicates that
a. unplanned inventory accumulation will cause output to rise. b. unplanned inventory accumulation will cause output to fall. c. unplanned inventory reductions will cause output to rise. d. unplanned inventory reductions will cause output to fall.
According to the text, one important economic application of the anchoring and adjustment bias is
A. in estimating the failure rates of complex projects. B. to evaluate consumer behavior with regard to luxury spending. C. to increase productivity in volunteer organizations. D. to estimate production costs of simple operations.
How much is the MPS?
