Explain why policy lags could make stabilization policies counterproductive
As the textbook explains, it takes time to recognize an economic problem, to take action, and for that action to have its effect on the economy. By the time a policy is enacted and takes effect, the economy may have already recovered. So policy will end up being destabilizing; it may actually result in larger economic fluctuations.
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If the United States and other developed nations pay the cost of reducing carbon emissions from the atmosphere, developing nations such as India could benefit from the reduction while not contributing to it
In this sense, reducing carbon emissions is essentially a A) public good. B) private good. C) club good. D) transactions good.
To implement the Friedman rule for long-term monetary policy, the monetary authority would need to set the
A) inflation rate equal to zero. B) nominal rate of interest equal to zero. C) real rate of interest equal to zero. D) money growth rate equal to zero.
A monopolist sells 100 units at $10 per unit and 90 units at $15 per unit. The marginal revenue from the tenth unit is
A) $1000. B) $1350. C) $100. D) $350.
Explain the two theories of desired income distribution: the egalitarian principle and the productivity standard
What will be an ideal response?