Discretionary monetary policy is defined as policy
A) that is based on the judgments of policymakers.
B) for which the markets make all decisions.
C) that is pursued regardless of the current state of the economy.
D) that responds to a changing economy with predetermined rules.
E) for which the policymaker always publicizes the policy as extensively as possible because its effectiveness depends on the public's knowledge of the policy.
A
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Which of the following is not a characteristic of long-run equilibrium in a monopolistically competitive market?
A) Production is at minimum average total cost. B) Marginal revenue equals marginal cost. C) Selling price equals average total cost. D) Selling price is greater than marginal cost.
Which of the following is a microeconomics topic?
a. A price of a new home. b. The inflation rate. c. The economy's growth rate. d. The unemployment rate. e. Forecasts of a recession next year.
If the demand for net exports rises, which of the following happens in the open-economy macroeconomic model?
a. the exchange rate rises b. the interest rate falls c. net capital outflow rises d. All of the above are correct.
Real consumption is a function of real disposable income, but the simple Keynesian model uses real GDP instead of real disposable income. This is appropriate since
A. real disposable income is a fixed percentage of real GDP. B. real GDP is a fixed percentage of real disposable income. C. we cannot measure either exactly and the purpose of the exercise is theoretical only. D. real disposable income tends to move proportionately with real GDP.