As uncertainty about the effects of policy on output decreases, we would expect that
A) policy makers would be more frequently implement fine tuning policies.
B) policy makers would implement more active policies.
C) policy makers would implement less active policies.
D) both A and B
E) both A and C
D
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In evaluating policy effectiveness, economists rely on:
A. positive analysis. B. normative analysis. C. both normative and positive analysis. D. Economists can never fully analyze any real-world policy effectiveness.
Describe the vicious circle of poverty. What are the consequences of this cycle?
What would happen in the market for loanable funds if the government were to increase the tax on interest income?
a. The supply of loanable funds would shift right. b. The demand for loanable funds would shift right. c. The supply of loanable funds would shift left. d. The demand for loanable funds would shift left.
Consider Figure 12.3. If David's payoff in the bottom rectangle were 40 instead of 70, the outcome of the game would be that:
A. both choose a high price. B. both choose a low price. C. Becky chooses a high price and David chooses a low price. D. David chooses a high price and Becky chooses a low price.