The Keynesian model
a. assumes a stable, downward sloping Phillips curve in the short run.
b. implies a horizontal Phillips curve in the long run.
c. shows that the Phillips curve is can be downward or upward sloping in the short run.
d. differs from Friedman's analysis pertaining to the vertical long-run Phillips curve.
A
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A. allows participants to choose among only choices that are good for them. B. can sometimes accomplish public policy goals in a less expensive way than traditional methods. C. presents choices that are similar to participants' ideal choices, but are slightly better than them. D. is a deliberate push by choice architect to get all people to behave a certain way.
Lowering the required reserve ratio raises the simple deposit multiplier
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There is a 20% chance that you will earn $20,000; a 20% chance that you will earn $40,000; and a 60% chance you will earn $50,000. What are your expected earnings?
What will be an ideal response?
If voters are rationally ignorant, then the interest of the bureaucracy to maximize its budget will result in an oversupply of a public good
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