Central bank credibility may be established by ________
A) the appointment of individuals to the Fed with a strong aversion to inflation
B) quicker responses to negative aggregate supply shocks
C) greater coordination between monetary and fiscal policy
D) the appointment of central bankers who are hawkish on defense
A
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The equilibrium real wage is 25, the money supply equals 15, and k equals 3 . If equilibrium output is 10 then the equilibrium nominal wage is
a. 3. b. 4.5. c. .22 d. 5
If a firm had a fixed proportions technology, then the pollution produced by this firm
A) cannot be reduced. B) can be reduced only by lowering the level of output (holding technology constant). C) can be reduced by changing how the output is produced within the bounds of the existing technology. D) can be reduced only by increasing the number of firms in the industry. E) can be reduced only by changing the technology.
Julia is a 28-year-old nonsmoking, non-drinking female of normal weight. Because of adverse selection in health insurance,
A) She will be charged less for her premiums than people who are higher risks. B) She is less likely to buy health insurance than the average person, because policy premiums are based on expected medical expenditures of people who are less healthy than she is. C) When she get health insurance, she will be less likely to take care of herself. D) She must get health insurance early in life, and is likely to lose health insurance if she smokes, drinks to excess, or gains weight. E) She is more likely than the average person to buy health insurance, because she is more likely to be offered it.
In a common-value auction
a. No bidder knows what the exact value of the item being auctioned b. Each bidder has only an estimate of the value of the item c. The value is the same for each bidder d. All of the above