Critics of stabilization policy argue that
a. there is a lag between the time policy is passed and the time policy has an impact on the economy.
b. the impact of policy may last longer than the problem it was designed to offset.
c. policy can be a source of, instead of a cure for, economic fluctuations.
d. All of the above are correct.
d
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The natural unemployment rate is
A) equal to the sum of frictional, cyclical, and seasonal unemployment. B) not known with certainty. C) equal to zero. D) the same for all industrialized countries. E) equal to the sum of frictional, structural, and cyclical unemployment.
The expected real interest rate approximately equals
A) the nominal interest rate minus the tax rate. B) the nominal interest rate minus the expected rate of inflation. C) the nominal interest rate plus the expected rate of inflation. D) the yield to maturity on a coupon bond held to maturity.
Total expenditures can be written as C + I + G + (X ? IM)
a. True b. False Indicate whether the statement is true or false
The official dividing line between the poor and nonpoor is called the
A. life threshold. B. life edge. C. poverty line. D. beginning line.