A contractionary monetary policy can reduce the inflation rate without causing a rise in unemployment if expectations are formed rationally and monetary policy is
A) combined with expansionary fiscal policy.
B) carried out in total secrecy.
C) publicly announced and credible.
D) combined with contractionary fiscal policy.
C
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In a perfectly competitive market, a marginal entrant:
A) earns positive economic profits in the long run. B) is the first firm to enter a market. C) is indifferent between entering and not entering. D) determines the market price of the good it produces.
Developing countries have often attempted to establish cartels so as to counter the actual or perceived inexorable downward push on the prices of their exported commodities. OPEC is the best well known of these
How are such cartels expected to help the developing countries? At times importing countries profess support for such schemes. Can you think of any logical basis for such support? How are cartels like monopolies, and how are they different from monopolies. Why is there a presupposition among economists that such schemes are not likely to succeed in the long run?
Supply-side economists
A. favor a smaller government. B. favor higher marginal tax rates. C. favor deficit spending. D. all of these.
The size of the labor force depends on the size of the working-age population and the:
A. Participation rate B. Employment rate C. Unemployment rate D. Inflation rate