Those who favor an active approach to policy believe that:
a. discretionary monetary policy cannot be used to help the economy since monetary policy lags are long.
b. discretionary fiscal policy cannot be used to help the economy since fiscal policy lags are long
c. lags associated with implementing policies are too long and unstable for discretionary policy to be effective.
d. despite the lags involved, implementing discretionary policy is preferable to inaction.
e. the discretionary fiscal policy cannot be used to help the economy since it leads to inflation.
d
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Assume that a country has had a relatively steady growth of aggregate real GDP. A higher population growth tends to
A) increase the level of economic freedom. B) increase the level of dead capital. C) increase the growth of per capita real GDP. D) reduce the growth of per capita real GDP.
How might a court use cross elasticity in an antitrust case?
What will be an ideal response?
The term contagion refers to
A) a government's complete control over it's banking system. B) a drop in interest rates across industrialized countries. C) the vulnerability of healthy economies to crises generated by events elsewhere. D) a directed attack on one market by a foreign market. E) a side effect of international trade.
What happens if we internalize a negative externality?
a) Internalizing a negative externality will cause an industry to increase the quantity it supplies to the market and increase the price of the good produced. b) Internalizing a negative externality will cause an industry to decrease the quantity it supplies to the market and increase the price of the good produced. c) Internalizing a negative externality will cause an industry to decrease the quantity it supplies to the market and decrease the price of the good produced. d) Internalizing a negative externality will cause an industry to increase the quantity it supplies to the market and decrease the price of the good produced.