An opponent of monetary policy decisions by rule would point to which of the following as support of his case?
a. time inconsistency of policy
b. flexibility to confront unforeseen circumstances
c. political business cycle
d. the ability to craft rules that account for all possible contingencies in advance
b
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Monopolistic competition is judged to be economically inefficient because
A) the price is greater than marginal cost. B) firms earn zero economic profit in the long run. C) marginal revenue equals marginal cost. D) firms have deficient capacity in the long run. E) firms earn an economic profit in the long run.
A strategy in which a player uses probabilities to decide which strategy to use is called a
A) pure strategy. B) mixed strategy. C) Pareto strategy. D) coin flip strategy.
Annie had a job as a human resource manager of a restaurant chain that went out of business due to a downturn in the economy
She looked for work for six months and gave up because she was convinced that she could not find a suitable job to fit her skill set. In this instance she would be counted as a A) job leaver. B) reentrant. C) discouraged worker. D) labor force participant.
There is no difference between government expenditures or outlays and government purchases or spending
a. True b. False Indicate whether the statement is true or false