If policy makers estimate the natural rate of unemployment incorrectly, _____

a. their policies will cause deflation in the long run
b. their policies will cause even more unemployment in the long run
c. the economy will stay below its potential GDP in the long run
d. the economy will tend toward the level of unemployment the policy makers believe is correct
e. policies that appear to be successful in the short run will lead to further economic problems


e

Economics

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Suppose two neighborhoods (A and B) have identical housing, but neighborhood A has a strictly enforced deed restriction that prohibits homeowners from parking junk cars in the front yard

If houses in neighborhood A sell for $105,000 and houses in neighborhood B sell for $100,000, how would an economist value the external cost of visible junk cars, per house? A) $205,000 B) $105,000 C) $100,000 D) $5,000 E) None of the above answers is correct.

Economics

Which of the following does the crowding-out effect stress?

What will be an ideal response?

Economics

Although the Federal Reserve had traditionally made discount loans only to commercial banks, in response to the financial crisis in 2008 the Fed made ________ eligible for discount loans as well

A) the Treasury Department B) mortgage brokers C) savings banks D) primary dealers

Economics

Which act specifically outlawed price discrimination when such discrimination is not justified on the basis of cost differences and when it reduces competition?

A. Sherman Act B. Clayton Act C. Wheeler-Lea Act D. Federal Trade Commission Act

Economics