To stabilize the economy rational expectations theorists favor the use of
A. wage and price controls.
B. discretionary fiscal policy.
C. discretionary monetary policy.
D. policy rules.
D. policy rules.
You might also like to view...
In the above figure, the equilibrium level of real GDP per year is
A) $1.0 trillion. B) $3.0 trillion. C) $2.0 trillion. D) $4.0 trillion.
When the price of a cup of coffee falls from $3.00 to $2.50, the quantity demanded increases from 1,000 per month to 1,150 per month. Using the midpoint method, the price elasticity of demand is
A) 0.77. B) 1.30. C) 0.07. D) 3.00. E) 2.50.
A shift in demand occurs when
A) the price of that good changes. B) the amount demanded of a good changes at each existing price. C) there is a change in quantity demanded. D) the price changes and the good is a normal good.
When economists say goods are scarce, they mean...
What will be an ideal response?