Which of the following describes the relationship between the actual federal funds rate and that suggested by Taylor's rule following the recovery from the 2001 recession?
A) The federal funds rate was above that suggested by Taylor's rule.
B) The federal funds rate was below that suggested by Taylor's rule.
C) The federal funds rate was about equal to that suggested by Taylor's rule.
D) There was not a clear relationship between the federal funds rate and that suggested by Taylor's rule.
B
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Someone notices that sunspot activity is high just prior to recessions and concludes that sunspots cause recessions. This person has
a. confused association and causation. b. misunderstood the ceteris paribus assumption. c. used normative economics to answer a positive question. d. built an untestable model.
Economists use the term ______ to refer to the ability of a single person (or a small group) to have a substantial influence on market prices
Fill in the blank(s) with correct word
Until the last half of the twentieth century, most people did not have health insurance
a. True b. False
Market equilibrium occurs at that price for which
a. quantity supplied equals quantity demanded b. cost equals the wages to labor c. the surplus quantity drives increased demand d. quantity supplied exceeds quantity demanded e. quantity supplied is less than quantity demanded