Which of the following statements is true?
a. A political business cycle is one created by the incentive for politicians to manipulate the economy to get re-elected.
b. Adaptive expectations theory argues that the best indicator of the future is recent information.
c. Incomes policies tend to be ineffective over time.
d. Incomes policies include jawboning, wage-price guidelines, and wage-price controls.
e. All of these.
e
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When a business is considered by law to be a legal entity, it is known as a
A) partnership. B) conglomerate. C) corporation. D) proprietorship.
Because GDP does not fully account for improvements in the quality of goods, the GDP calculation
a. tends to overstate the true value of output in the United States. b. tends to understate the true value of output in the United States. c. provides an accurate value of output in the United States. d. measures the value correctly because price changes always capture the value of quality changes.
Some companies resolve service failures so successfully that customer satisfaction actually increases following a disruption. What is this known as?
a. Service recovery paradox b. Emergency relief system c. Customer satisfaction paradigm d. Efficiency planning
If the Fed simultaneously lowers the reserve requirement and sells government bonds, the money supply will:
A. expand. B. remain unchanged. C. contract. D. move in a way that cannot be determined from the information given.