If the monetary policy curve is correct, then policy makers care only about inflation and not at all about aggregate output and unemployment. Comment
What will be an ideal response?
The monetary policy curve is a concise expression of monetary policy, highlighting policy makers' concern with inflation stability. Policy concerns other than inflation are represented by shifts of the MP curve, so that the real interest rate may change independently of the inflation rate. Moreover, the goal of inflation stability implies the need to be responsive to macroeconomic conditions in general, since the behavior of inflation is closely linked to changes in aggregate output and unemployment.
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Answer the question using the table. Figures are in billions of dollars. The equilibrium interest rate and quantity of loanable funds demanded and supplied in this market will be
A. 12 percent and $22 billion. B. 14 percent and $26 billion. C. 10 percent and $18 billion.
If a business produces and sells only one unit of a good, its profit would be the
a. price received for the good b. price of the product minus the cost of the resources used to produce the product c. return paid to the firm's bank on its outstanding loans d. price of the product minus the wages paid for the labor used to produce it e. wages paid for the labor used to produce the product minus the price
A decision tree is used when modeling:
A. a prisoner's dilemma. B. simultaneous decisions. C. games in which timing matters. D. any type of game.
When the government implements an agricultural price support (above the equilibrium price), a surplus results and the government buys the surplus at the support price
Indicate whether the statement is true or false