If a government managed to reduce the time inconsistency problem by mandating that the central bank target inflation at a low rate, then
a. the long-run Phillips curve would shift right.
b. the long-run Phillips curve would shift left.
c. the short-run Phillips curve would shift up.
d. the short-run Phillips curve would shift down.
d
You might also like to view...
Suppose that Industry X has two firms with equal market shares, and Industry Y has three firms with 65 percent, 30 percent, and 5 percent market shares, respectively. Which of the following is TRUE?
A) The HHI for Industry X is 50 higher than the HHI for Industry Y. B) The HHI for Industry X is 150 lower than the HHI for Industry Y. C) The HHI for Industry X is 100 higher than the HHI for Industry Y. D) The HHI is the same between Industry X and Industry Y.
Projection bias:
A. is the tendency to evaluate future consequences based on tastes and needs at the moment of the decision making. B. is the tendency to project future states of mind into the present. C. can lead people to overestimate their adaptability. D. All of these are true about project bias.
Collusion is most likely to occur in those oligopolies in which firms have vastly different cost structures
a. True b. False
A sudden stop will be easier to navigate if the country borrows internationally in foreign currencies and lend locally in its domestic currency
Indicate whether the statement is true or false