The challenges facing policymakers today include each of the following, except:
A. nominal interest rates cannot fall below the effective lower bound (somewhat below zero).
B. the structure of the economy and financial system continues to evolve.
C. stock and property values are subject to booms and busts.
D. the economy's sustainable growth rate is highly stable.
Answer: D
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The short-run Phillips curve is a curve that shows the relationship, other things being constant, between ________ and ________
A) the inflation rate; the nominal interest rate B) the inflation rate; the expected inflation rate C) the unemployment rate; real GDP D) potential GDP; the natural unemployment rate E) the inflation rate; the unemployment rate
Characteristics of a perfectly competitive market include:
A. the presence of transaction costs. B. differentiated products. C. many sellers, each with a small market share. D. All of these are characteristics of a perfectly competitive market.
In the above scenario, the profit of the company will
a. increase. b. decrease. c. remains the same. d. may increase or decrease.
When the marginal product of labor increases as the amount of labor employed increases,
a. the additional worker has made other workers more productive b. the firm also must have increased the amount of capital c. the firm is experiencing economies of scale d. there has been an improvement in the available technology e. the law of diminishing returns has been violated