A problem with the use of aggregate demand management to stabilize the business cycle is that
A) monetary policy isn't available to use when interest rates are already rising because of higher inflation.
B) fiscal policy takes a long time to have any impact on the economy.
C) monetary policy is difficult to use, because the decision-making process is long and complicated.
D) the precise amount that output will change in response to monetary or fiscal policy isn't known.
D
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The discount window is
A) another name for the discount rate. B) the means by which the Fed makes discount loans to banks. C) the spread between the discount rate and the T-bill rate. D) the period each month during which banks are allowed to apply for discount loans.
The idea that any public information you will be able to find will prove of little value to you when buying and selling stocks, because that information is so quickly incorporated into the trading prices of stocks, is known as the
A) theory of efficient markets. B) theory of fundamental analysis. C) principle of context. D) over-the-counter hypothesis.
In a natural monopoly,
a. society would be better off if antitrust laws were used to create many different firms in the market. b. the marginal cost curve is positively sloped. c. if the government requires marginal cost pricing, it will likely have to subsidize the firm. d. the marginal revenue curve is horizontal.
The MFC can be calculated by the
A. total wages/total labor. B. change in labor/change in total wages. C. change in total wages/change in labor. D. total wages/change in labor.