The short-run Phillips curve suggests what policy making implications?
A. Active policy making does not yield any predictable results.
B. Passive policy making is more effective than active policy making.
C. Maintaining both the inflation and unemployment rates at low levels is possible if policy makers will rely solely on nondiscretionary policy making.
D. Using discretionary policies, it may be possible to achieve just the right unemployment and inflation mix.
Answer: D
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Refer to Table 18-2. The table above lists three policy alternatives that the U.S. Senate will vote on, along with the ranking of these alternates
The Senate must decide which of these alternatives should receive an additional $1 billion of funding, and there is enough money in the federal budget for only one of these alternatives. If a series of votes is taken in which each pair of alternatives is considered (homeland security and education; homeland security and medical research; education and medical research) which of the following will result from these votes? A) The results will illustrate the voting paradox. B) When the vote is between homeland security and education, the Senators will vote for education to receive funding. C) The results from the voting will illustrate the median voter theorem. D) The Senators' votes will demonstrate transitivity.
In the open economy model, the supply of loanable funds comes from national saving and net capital outflow
a. True b. False Indicate whether the statement is true or false
After an employer pays the cost of educating a worker,
a. the worker has a higher level of human capital. b. the worker should become more productive. c. the worker might look for another job unless his employer pays him more. d. All of the above are correct.
The primary purpose of antitrust legislation is to
a. protect small businesses. b. protect the competitiveness of U.S. markets. c. protect the prices of American-made products. d. ensure firms earn only a fair profit.