The time inconsistency of policy implies that
a. what policymakers say they will do is generally what they will do, but people don't believe them because of current policy.
b. when people expect that inflation will be low, it is harder for the Fed to increase output by increasing the money supply.
c. people will believe Fed policy will be more inflationary than the Fed claims.
d. what policymakers say they will do is usually not what they do, but people believe them anyway.
c
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Suppose the market for autoworkers is initially in equilibrium, but then the automakers purchase capital goods that are a substitute for workers. What happens in the market for autoworkers?
What will be an ideal response?
Economies of scale exist when
A. fixed cost decreases as output increases. B. long-run marginal cost is less than long-run average cost. C. long-run average cost decreases as output increases. D. both a and b E. both b and c
Explain the supply and demand of products, factors of production, the payments for the products and factors of production as described in the circular flow diagram.
What will be an ideal response?
The Packers and Stockyards Act of 1921
A) reinforced antitrust laws regarding livestock marketing. B) established the Packers and Stockyards Administration, still exists today. C) was the principal legislation exempting cooperatives from antitrust laws. D) Both A and C