Policy lags tend to make monetary policy ________.
A. more effective in expansions than contractions
B. less effective than fiscal policy
C. pro-cyclical
D. more effective than initially thought
Answer: C
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Refer to Figure 13.2. The technical name given to Alice, based on her position in the figure, is the
A) election moderator. B) median voter. C) irrelevant alternative. D) strategic voter.
Employing utilitarianism as a measure of the public interest _____
a. is inconsistent with the concept of a social welfare function b. attempts to minimize the problems associated with market failure c. attempts to maximize total utility in a society d. avoids comparing individual's utilities
Attempts to alleviate poverty have included all of the following income-maintenance programs EXCEPT
A) Social Security. B) temporary assistance to needy families. C) 401(k) plans. D) food stamps.
A key result of the equilibrium aggregate expenditure model is that it:
A. can explain why the economy should always be at natural rate GDP. B. illustrates how the government always moves us towards equilibrium GDP. C. can illustrate how an economy can be at an equilibrium that is below natural rate GDP. D. shows how classical notion that the economy will always tend towards natural rate GDP is correct.