Policymakers may be uncertain about the structure of the economy because
A) initial releases of data may be less accurate than later data releases.
B) they don't know the predominant source of shocks to the economy.
C) they don't know how shocks affect people's expectations.
D) they are not aware of modern macroeconomic modeling techniques.
B
You might also like to view...
Moving along the aggregate production function shows the relationship between ________, holding all else constant
A) capital input and real GDP B) labor input and real GDP C) labor input, capital input and real GDP D) technology and real GDP
If Happy Babies sells its baby formula in the United States for 30 percent less than it does in Canada, this is an example of ________.
A) peak-load pricing B) two-part pricing C) third-degree price discrimination D) second-degree price discrimination
Which of the following will cause a rightward shift of the demand curve?
A) a decrease in the cost of production B) a decrease in the price of the good C) an increase in the expected future price of the good D) all of the above
Other things equal, which of the following is true?
a. A reduction in prices will increase the real wealth of those holding a fixed quantity of money. b. A reduction in prices will lead to a decline in net exports. c. A reduction in prices will increase the scarcity of money, raise the real interest rate, and, thereby, encourage investment and consumption. d. A reduction in prices will increase profit margins and, thereby, stimulate additional investment.