Which of the following is the most realistic example concerning economic policy?
a. An economist accurately predicts how unemployment rates will change next year.
b. An economist knows if the money supply increases 3 percent, interest rates will decrease 3 percent.
c. An economist predicts the exact effect an expansionary policy will have.
d. An economist believes interest rates will increase next year but is not absolutely sure.
d. An economist believes interest rates will increase next year but is not absolutely sure.
You might also like to view...
Price-cap regulation not only motivates cost control, it can also motivate socially desirable pricing
Indicate whether the statement is true or false
A market dominated by a single seller:
a. start-up costs b. merger c. patent d. monopoly e. deregulation
An investment's average expected rate of return is the:
A. probability-weighted average of the investment's possible future rates of return. B. simple average of the investment's possible future rates of return. C. probability-weighted average of all past rates of return. D. simple average of the rates of return of all similar investments.
Explain the output and factor substitution effects of an increase in the price of capital on theDemand for labor by a firm that produces output using both capital and labor
What will be an ideal response?