What might an "anti-inflation hawk" do so that good macroeconomic performance is likely to continue under his or her successors as head of the central bank?
What will be an ideal response?
To institutionalize good policy making, the central bank head should encourage elected officials to demand that monetary policy objectives and strategies be publicly announced and explained. As an alternative to political influence, the head of the central bank should be required to report and to "justify" discrepancies between announced objectives and observed performance.
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Answer the next question using the figure below.
In the diagram, line AB is the U.S. production possibilities curve and line AC shows the consumption possibilities for the U.S. after it has decided to engage in international trade. We can conclude that the United States
A. has decided to trade beef for cheese. B. has chosen to specialize in the production of cheese. C. is relatively more efficient than its trading partners in producing both cheese and beef. D. has chosen to specialize in the production of beef.
On average, in the recessions since 1950, it has taken ________ for real GDP to return to its cyclical peak
A) about 6 months B) about 1 year C) about 18 months D) almost 2.5 years
The law of supply states that there is
A. a direct relationship between profit and quantity supplied, ceteris paribus. B. no relationship between price of resources and number of suppliers, ceteris paribus. C. an inverse relationship between price and technology, ceteris paribus. D. a direct relationship between price and quantity supplied, ceteris paribus.
The form of business organization responsible for generating the greatest portion of business revenues in the United States is the
A. corporation. B. partnership. C. proprietorship. D. dual proprietorship.