Suppose policy makers overestimate the natural rate of unemployment. In situations like these, policy makers will likely implement policies that result in
A) less unemployment than necessary.
B) an unemployment rate that is "too low."
C) a lower inflation rate than necessary.
D) a steadily increasing inflation rate.
E) overly expansionary monetary and fiscal policy.
C
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If the dollar appreciates, perhaps because of speculation or government policy, then U.S. net exports
a. increase which shifts aggregate demand right. b. increase which shifts aggregate demand left. c. decrease which shifts aggregate demand right. d. decrease which shifts aggregate demand left.
Basic attributes of a society that permit citizens to trust in the functioning of its institutions are best summarized as
a. governance b. social capital c. shared growth d. developmental state e. all of the above
_____ is (are) legal in the United States.
A. Covert collusion B. Cut throat competition C. Cartels D. None of these choices are true.
Which of the following is an example of a public good?
A. A weather warning system. B. A television set. C. A sofa. D. A bottle of soda.