Perfect capital mobility mixed with floating exchange rates means that
A) fiscal spending is completely ineffective.
B) monetary policy is completely ineffective
C) neither fiscal nor monetary policy will be effective.
D) both fiscal and monetary policies efficiencies will be maximized.
A
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Robert Lucas spurred the rational expectations revolution in ________
A) the 1960s B) the 1970s C) the 2000s D) the 1880s
Since there are smaller fluctuations in the equilibrium prices of final goods than in the prices of intermediate goods, the producer price index is more volatile than the consumer price index
a. True b. False Indicate whether the statement is true or false
Which of the following statements is false?
A) Economic costs include the opportunity costs of the resources owned by the firm. B) Accounting costs typically include only explicit costs. C) Economic profit will always be less than accounting profit if resources owned and used by the firm have any opportunity costs. D) Accounting profit is equal to total revenue minus implicit costs.
In the face of an increase in oil prices, if the government's primary objective is to keep prices from falling, then policymakers should
a. reduce taxes. b. reduce the money supply. c. increase government spending. d. increase aggregate supply through regulation.