New Keynesians argue that
A. appropriate activist policies will increase the length of cyclical fluctuations.
B. appropriate activist policies will have an known effect on the length of cyclical fluctuations.
C. appropriate activist policies can reduce cyclical fluctuations.
D. none of these.
Answer: C
You might also like to view...
If the federal government implements programs to more quickly match the unemployed with jobs, then the natural rate of unemployment
A) will increase. B) will decrease. C) will not change. D) will disappear.
Mr. Pierpont has wealth of $200,000. He wants to keep at least $80,000 in bonds at all times, and will shift $10,000 into bonds from his checking account for each percentage point that the interest rate on bonds exceeds the interest rate on his
checking account. If the interest rate on checking accounts is 4% and the interest rate on bonds is 9%, how much does Mr. Pierpont keep in his checking account? A) $50,000 B) $70,000 C) $130,000 D) $150,000
When prisoners' dilemma games are repeated over and over, sometimes the threat of penalty causes both parties to cooperate
a. True b. False Indicate whether the statement is true or false
In Macroland, potential output equals $100 trillion and the natural rate of unemployment is 4 percent. If the actual unemployment rate is 5 percent, then real GDP must be:
A. $96 trillion. B. $104 trillion. C. $98 trillion. D. $102 trillion.