The "policy ineffectiveness proposition" of the new classical attack on policy activism is based on the idea that
A) people will anticipate policy changes particularly those based on a feedback rule.
B) people will anticipate the effects of policy changes and act to offset these effects.
C) Both A and B are correct.
D) None of the above is correct.
C
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Persistent current account deficits in the United States
A) cause persistent declines in investment in the United States. B) will eventually cause the value of the dollar to rise. C) can be seen as a vote of confidence in the strength of the U.S. economy. D) cause U.S. investors to accumulate more foreign assets than foreign investors accumulate U.S. assets.
Technological change and labor productivity are negatively related
a. True b. False Indicate whether the statement is true or false
Technological change or the effects of automation cause
a. structural unemployment. b. frictional unemployment. c. seasonal unemployment. d. cyclical unemployment.
The percentage change in the demand for one good divided by the percentage change in the price of a related good is the
A) price elasticity of demand. B) price elasticity of supply. C) cross price elasticity of demand. D) income elasticity.