The idea that hysteresis plays a role in macroeconomics implies that
a. monetary policy can have an effect on the natural rate of unemployment.
b. workers can overreact to changes in monetary policy.
c. stabilization policy is ineffective and counterproductive.
d. fiscal policy is ineffective and counterproductive.
A
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In the above figure, if the price is $1.25 per gallon of milk and 5 million gallons are produced and consumed, then the consumer surplus is ________ and the producer surplus is ________
A) $3.125 million; $3.125 million B) $12.5 million; $12.5 million C) $6.25 million; $6.25 million D) None of the above answers are correct.
The ultimate purpose of an economic model is to
a. explain reality as completely as possible b. establish assumptions that closely resemble reality c. help us understand economic behavior d. determine what each decision maker wants to maximize e. guide government policy decisions
When the government created the Consumer Product Safety Commission they created what type of government regulation?
a. social regulation b. economic regulation c. antitrust policy d. none of the above
What is the declining or dying industry argument for establishing barriers to imports? What are its merits and weaknesses? What measure(s) is/are more efficient than an import tariff if the intention is to help workers who would be displaced from a dying industry? Why? What measure(s) is/are more efficient than an import tariff if maintaining current production levels is the goal of government policy?
What will be an ideal response?