Economist John Maynard Keynes is famous for saying, "In the long run, we are all dead." He is referring to the:
A. length of time it can take the economy to recover to potential GDP without policy intervention.
B. permanent inflation that results in long-run adjustments.
C. fact that no policy can affect the long-run equilibrium.
D. notion the economy is sure to collapse in the long run.
A. length of time it can take the economy to recover to potential GDP without policy intervention.
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Refer to Table 3.2, which shows some costs and benefits of having your car repaired. Suppose you use your car to deliver pizzas. If your wage increases from $10 to $20 per hour, what happens to your best choice of hours to spend on car repairs?
A. It increases by 1 hour.
B. It decreases by 1 hour.
C. It doesn't change.
D. It decreases by 2 hours.
To move quickly to turn around the crisis during 2007-2008, the U.S. Federal Reserve relied on:
a. lowering taxes. b. removing restrictions on collateral, adding more categories of securities purchased by the Federal Reserve, and expanding its operations with nonbank dealers. b. tightening up credit rules and keeping banks out of trouble. d. admonishing the administration for its excessive debt situation.
Duration is a variable that measures:
A. the time when a certain event occurs. B. the time before a certain event occurs. C. the time after a certain event occurs. D. the appropriate number of lags for a regression model.
Limited capital account convertibility provides:
A. a lower level of convertibility than convertibility on the current account. B. a greater level of convertibility than convertibility on the current account. C. a greater level of convertibility than full convertibility. D. the lowest possible level of convertibility.