The policy ineffectiveness proposition of the new classical model suggests that ________
A) unanticipated policy has no effect on the business cycle
B) anticipated policy can have an effect on the business cycle
C) anticipated policy has no effect on the business cycle
D) legislative policy initiatives have little effect if the executive branch of government is in the hands of another political party
C
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Consider the following economic agents:
a. the government b. consumers c. producers Who, in a modern mixed economy, decides what goods and services will be produced with the scarce resources available in that economy? A) producers B) consumers C) the government, consumers, and producers D) the government E) consumers and producers
Two telephone networks that grant access so they can complete each others' calls will be motivated to set efficient prices
Indicate whether the statement is true or false
A positive temporary supply side shock will:
A. increase the level of potential output in the long run. B. decrease the price level in the long run. C. increase the price level in the long run. D. have no effect in the long run.
Compared to the distribution of money income, the distribution of wealth is
A) about the same. B) much more equal. C) much less equal. D) a little more equal.