Normative economic analysis _____
a. is concerned only with the facts
b. is a statement about the relationship between a policy change an outcome
c. judges the desirability of a policy change
d. does not involve value judgments
c
You might also like to view...
Refer to Figure 15-7. Suppose the economy is in a recession and the Fed pursues an expansionary monetary policy. Using the static AD-AS model in the figure above, this would be depicted as a movement from
A) A to E. B) A to B. C) B to C. D) C to B. E) C to D.
Politicians have an incentive to favor short-run policies because _____
a. because voters suffer from myopia b. of special interests c. they may be voted out of office before long-run policies bear fruit d. of rational ignorance
The advancement of computers has increased the productivity of a paper mill. How will this likely affect the supply of paper? It will likely cause:
A. a rightward shift in the supply of paper. B. a leftward shift in the supply of paper. C. a shift straight up in the supply of paper. D. no shift, but a movement along the supply curve.
In a laissez-faire system, the price mechanism dictates the production planning decisions
a. True b. False Indicate whether the statement is true or false