Policy makers cannot achieve both price stability and economic activity stability when facing
A) temporary supply shocks.
B) permanent supply shocks.
C) demand shocks.
D) all of the above.
A
You might also like to view...
If net exports are negative,
A) net foreign investment is positive. B) capital inflows must be less than capital outflows. C) net foreign investment is also negative. D) Both A and B are correct.
Refer to Figure 2.1. At point D, demand is:
A) completely inelastic. B) inelastic, but not completely inelastic. C) unit elastic. D) elastic, but not infinitely elastic. E) infinitely elastic.
Refer to the above figure. Suppose that the economy initially is operating along AD1
If the government seeks to close the recessionary gap by raising government spending without any change in taxation, which moves the aggregate demand curve from AD1 to AD2, then to AD3. Which of the following scenarios is TRUE? A) Interest rates fall and investment rises. B) Both interest rates and investment fall. C) Both interest rates and investment rise. D) Interest rates rise and investment falls.
Exclusions from GDP measurement of such items as the value of housework and leisure seriously undermine the usefulness of GDP as an indicator of the economy's performance
Indicate whether the statement is true or false