According to the policy trilemma hypothesis, of the three goals generally pursued by policymakers in an open economy,
A) only one of the goals is possible to achieve at any one time.
B) it is possible for a country to achieve two of the goals at the same time, but not all three.
C) it is possible for a country to achieve all three goals at the same time in the short run, but not in the long run.
D) it is only possible for a country to achieve all three goals at the same time in the long run.
B
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The nominal interest rate approximately equals which of the following?
A) the real interest rate minus the inflation rate B) the real interest rate plus the inflation rate C) the real interest rate minus the growth rate of real GDP D) the real interest rate plus the growth rate of real GDP
Why are successful collusive oligopolies rather short-lived?
If a large fraction of the capital stock in the U.S. stopped functioning, it would: a. Shift the short run aggregate supply curve to the left
b. Shift the long run aggregate supply curve to the left. c. Shift both the short run aggregate supply curve and long run aggregate supply curves to the left. d. Do none of the above
Suppose you pre-ordered a non-refundable movie ticket to Avengers: Infinity War. On the day of the movie you decide that you would rather not go to the movie. According to economists, what is the rational thing to do?
A) Since you do not want to go to the movie and the cost of the movie ticket is a sunk cost, how much you paid for the ticket should not influence your decision. B) You should not waste resources. Since you have paid for the ticket you should watch the movie. C) Your should go to the movie to minimize your losses. D) You should go to the movie to maximize your utility.