Monetary policy credibility has the benefit of ________
A) stabilizing inflation in the short run when faced with positive demand shocks
B) stabilizing economic activity in the short run when faced with positive demand shocks
C) transmitting the effect of aggregate demand shocks onto short-run aggregate supply
D) enhancing the job opportunities of Federal Reserve officials after they leave the central bank
A
You might also like to view...
Suppose that the price of capital is $10 per unit and the price of labor is $8 per unit. Write an equation for an isocost line using this information. What would be the slope of this isocost line?
What will be an ideal response?
The rate at which one input can be reduced per additional unit of the other input, while holding output constant, is measured by the
A) marginal rate of substitution. B) marginal rate of technical substitution. C) slope of the isocost curve. D) average product of the input.
Which of the following statements is correct?
a. The ideal solution to a pollution problem is to reduce pollution until it is technologically impossible to reduce it any further. b. The ideal and fair solution to a pollution problem is to impose identical compliance standards on all polluting firms. c. Charging firms for transferable emissions permits is a more efficient way of dealing with pollution than are compliance standards. d. A per-unit pollution tax is a more efficient way of dealing with pollution than is a system of transferable emissions permits.
Asymmetric information exists when both sides of a market approach perfect information
a. True b. False