What is the principal difference between the neo-Keynesian and rational expectations theories concerning stabilization policy?
The neo-Keynesians believe that the government can achieve stabilization—a lowering of the
unemployment rate—in the short run, but not in the long run. The rational expectationists believe that any
attempt to execute stabilization will be unsuccessful in the short run as well as in the long run.
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Use the following graphs to answer the next question.
For which graph are there economies of scale throughout the entire range of output of cars?
A. Graph 1 B. Graph 2 C. Graph 3 D. Graph 4
An increase in the desired stock of housing would be caused by ________
A) an increase in household formation B) higher residential consumption C) a decrease in expected future income D) an increase in home prices
The figure above shows the market for bank reserves in Futureland
If the Bank of Futureland lowers the target federal funds rate by 1 percentage point, the central bank will conduct an open market ________ of government securities of ________ to ________ the supply of reserves. A) purchase; $25 billion; decrease B) sale; $25 billion; increase C) sale; $75 billion; decrease D) purchase; $75 billion; increase E) purchase; $25 billion; increase
If I voluntarily end my employment, the Bureau of Labor Statistics would consider me to be
A) a job loser. B) a job leaver. C) a discouraged worker. D) a reentrant.