A problem with comparing macroeconomic models is that
A. macroeconomic models cannot be expressed in mathematical terms.
B. people may change how they react when economic policies are changed.
C. macroeconomic models must meet government standards for uniformity.
D. macroeconomic models do not predict the same outcomes from policies.
Answer: B. people may change how they react when economic policies are changed.
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Rational expectations theory implies that the more completely the effects of policy makers are foreseen, the smaller their short run effects on real output and unemployment, and the greater their short run effects on the price level
a. True b. False Indicate whether the statement is true or false
According to a 1977 amendment to the Federal Reserve Act of 1913, what are the goals the Fed should promote?
Use of real GDP to measure changes in national output from one period to another can be misleading if
What will be an ideal response?
A situation in which output decreases while prices increase is often referred to as:
A. inflation. B. negative economic growth. C. a recession. D. stagflation.