Which of the following statements is likely to be made by an economist who believes in activist monetary policy? (1 ) The more closely monetary policy can be designed to meet the particulars of a given economic environment, the better. (2 ) Because of long and uncertain time lags, activist monetary policy may be destabilizing rather than stabilizing. (3 ) There is sufficient flexibility in wages
and prices in modern economies to allow the economy to equilibrate in reasonable speed at the natural level of Real GDP. (4 ) The "same-for-all-seasons" monetary policy is the way to proceed. (5 ) There is evidence that monetary policy in the mid-1970s caused a recession.
A) (1), (2), and (3)
B) (1), (4), and (5)
C) (1 ) and (5)
D) (4 ) and (5)
E) (1), (3), and (4)
C
You might also like to view...
In the 1990s the United States' economy generated more than _______ million additional jobs.
A. 5 B. 10 C. 15 D. 20
A patent is a government granted exclusive right to sell a product for a period of time.
Answer the following statement true (T) or false (F)
In the above figure, if this natural monopolist were regulated and allowed to earn a "fair" rate of return, it would produce
A. at Q3 output rate. B. at Q2 output rate. C. past the Q3 output rate. D. at Q1 output rate.
The condition P = MC implies that an individual who values the product at P will receive
A. no consumer surplus. B. only producer surplus. C. positive consumer surplus. D. negative consumer surplus.