The theorists of the rational expectations school:
a. favor monetary rules because they believe individuals know too little about how the economy works
b. favor monetary rules so that workers and firms do not get any unanticipated surprises from the Fed.
c. are those who favor an "active approach" to policy and reject monetary rules.
d. oppose any monetary rules because they believe rules impede the natural self-correcting mechanism of the economy.
e. do not believe in implementing discretionary policies.
b
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If both producers and consumers believe that a product's price will rise in the future, then at the present, demand ________ and supply ________
A) decreases; decreases B) decreases; increases C) does not change; does not change D) increases; decreases E) increases; increases
In recent years, "country risk analysis" has become an important part of international business. What do we mean by "country risk"? Briefly explain the factors that are involved in a country risk analysis
What will be an ideal response?
Which of the following will most likely reduce the natural rate of unemployment?
a. an increase in the minimum wage b. an increase in unemployment benefits c. an increase in the proportion of prime-age workers (35-54) as a share of the labor force d. an increase in the labor force participation rate of teenagers
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point E to Point A, the opportunity cost of hybrid cars, measured in terms of motorcycles
A. increases. B. initially increases, then decreases. C. decreases. D. remains constant.