Two emerging trends in 1990s macroeconomic thinking are that fiscal policy should be designed according to its ________ consequences and that monetary aggregates ________ useful in the conduct of monetary policy
A) short-run stabilization, are no longer
B) short-run stabilization, continue to be
C) long-run growth, are no longer
D) long-run growth, continue to be
C
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Explain what the phrase "price rationing" means
What will be an ideal response?
The SRAS would be vertical: a. if there was no profit effect
b. if there was no misperception effect. c. if there was no profit effect or misperception effect. d. under no conceivable set of circumstances.
A demand schedule shows
a. the "market potential" for a product. b. how much consumers are willing and able to buy at different prices. c. possible combinations of output under different conditions. d. how much producers would like to sell at different prices. e. All of the above are correct.
Consider a portfolio that consists of all of the risky assets in the economy, held in proportion to their existing quantities. This portfolio is
a. a risk-free asset. b. the only asset that a risk-averse investor chooses to hold. c. a market portfolio. d. in the center of the set of all risky assets.