When it comes to macro-policy, most economists now agree that
a. policy should be constantly changing in response to business cycle conditions.
b. policy changes should exert stimulus during inflationary booms and restraint during downturns.
c. given our ability to forecast economic conditions, policy changes easily can be implemented in a timely manner.
d. policy changes are difficult to time correctly, and therefore constant shifts in policy are likely to be a source of economic instability.
D
You might also like to view...
A social system in which rights are clearly defined and participants are free to exchange as they choose will tend to allocate resources to
A) their most efficient uses. B) their most highly valued uses. C) uses on which the highest monetary value is placed. D) uses which maximize social welfare. E) uses which produce the greatest good for the greatest member.
If the equation y = 15 - 4x was plotted, the:
A. vertical intercept would be -4. B. vertical intercept would be +4. C. vertical intercept would be +9. D. slope would be -4.
Refer to the above table. What is the absolute price elasticity of demand when a price rises from $9 to $9.50?
A. 2.85 B. 0.55 C. 2.57 D. 0.35
Considering the relevant market structures, which is an INCORRECT statement?
A. In any market situation, the number of firms is not very important. B. In monopolistic competition, there is a large number of firms. C. In a perfectly competitive situation, there is an extremely large number of firms. D. In pure monopoly, there is only one firm.