There is a strong consensus among economists that monetary policy is more effective when it is formed:
A. independently of political pressure.
B. to keep financial markets guessing.
C. by an individual rather than a committee.
D. in secrecy without the reasoning behind it being revealed for many years.
Answer: A
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At the equilibrium level of aggregate expenditure, what does aggregate expenditure equal? What happens at other levels of real GDP to bring about an equilibrium?
What will be an ideal response?
The price elasticity of demand is measured by the
A) percentage change in quantity demanded divided by the percentage change in price. B) percentage change in price divided by the percentage change in quantity demanded. C) change in quantity demanded divided by the change in price. D) change in price divided by the change in quantity demanded.
The earned income tax credit addresses the issue of ______
Fill in the blank(s) with the appropriate word(s).
Refer to the accompanying figure. If the market for doughnuts is perfectly competitive, and the price of a doughnut is 25 cents, then at this firm's profit maximizing level of output, the firm will earn an economic ________ of ________ per day.
A. loss; $80 B. loss; $10 C. profit; $80 D. profit; $8