To stabilize the economy rational expectations theorists favor the use of ___________.
Fill in the blank(s) with the appropriate word(s).
policy rules
You might also like to view...
Patents and copyrights are designed to
a. eliminate above-normal profit in the short run b. move monopoly prices closer to prices that would occur under perfect competition c. prevent the capitalization of monopoly profit d. allow a period of above-normal profit to encourage innovation e. limit a monopoly's rent-seeking activities
One thing economists do to help them understand how the real world works is
a. make assumptions. b. ignore the past. c. try to capture every aspect of the real world in the models they construct. d. All of the above are correct.
The following list contains factors that are related to the aggregate demand curve.1)Household expectations 2)Profit expectations 3)Degree of excess capacity 4)Personal income tax rates 5)Exchange rates 6)National income abroad 7)Government spending 8)Household wealth Refer to the above information. A change in net export spending would most likely be caused by changes in:
A. 5 and 6. B. 4 and 7. C. 2 and 3. D. 1 and 8.
If a nation is currently operating at a point inside its production possibilities curve, it
A. can increase the output of one good without decreasing the output of the other good. B. has fully employed resources. C. has no inefficiently employed resources. D. is operating at full potential.