The outcome of monetary policy can never be certain because
a. unemployment is always changing
b. the concept of a natural rate of unemployment is still not accepted by all policy makers
c. the slope of the AS curve is never clear
d. time lags disrupt policy planning
e. the natural rate of unemployment lags behind the actual rate of unemployment
D
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Since 1950, the average length of a recession in the United States has been
A) such that recessions barely exist. B) less than a year. C) between 1 and 2 years. D) greater than 2 years.
By definition, a firm that practices satisficing
A. maximizes its sales, not its profits. B. makes acceptable decisions, though not necessarily optimal ones. C. satisfies government guidelines instead of consumer demands. D. minimizes the cost of gathering enough information to make an optimal decision.
Refer to the above graph. The long-run aggregate supply curve would be represented by which line?
A. 1 B. 2 C. 3 D. 4
If an investor has a tax rate on interest income of 30% and the inflation rate is 4%, which bond has the highest expected real after-tax interest rate?
A. A municipal bond paying 6% B. A corporate bond paying 7% C. A Treasury bond paying 7% D. A Treasury bond paying 8%