When political officials have substantial discretionary power to override the rule of law,
What will be an ideal response?
this creates uncertainty and makes business activity less attractive.
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The market basket approach:
A. measures changes in the cost of a fixed shopping basket, assuming that typical consumer buys the same items in the same quantities. B. gives us a single number to measure how much your total costs for all goods and services change over time. C. is equivalent to simply averaging the increase in the price of each grocery item. D. is how economists monitor trends in what people like to buy from year to year.
The Phillips curve is a statistical relationship that was misrepresented as showing
A. disequilibrium outcomes of uncoordinated policy. B. alternative equilibrium points that the economy could achieve. C. the unemployment rates necessary to close a recessionary gap. D. the increases in interest rates from different inflation rates.
Use the IS-LM model to answer this question. Suppose there is a simultaneous increase in government spending and reduction in the money supply. Explain what effect this particular policy mix will have on output and the interest rate. Based on your analysis, do we know with certainty what effect this policy mix will have on investment? Explain
What will be an ideal response?
Other things the same, in the Solow model in the steady state, a higher rate of population growth ________ the level of output per worker
A) leads to an increase in B) has no long-run effect on C) has an ambiguous effect on D) leads to a decrease in