Policymakers may be uncertain about the state of the economy because
A) initial releases of data may be less accurate than later data releases.
B) they don't know the predominant source of shocks to the economy.
C) they don't know how shocks affect people's expectations.
D) they are not aware of modern macroeconomic modeling techniques.
A
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Which of the following makes the Consumer Price Index a less accurate measure of the cost of living?
i. The monthly price survey conducted to collect information about prices is very unreliable. ii. The existence of a new goods bias in the calculation of the CPI iii. The existence of a quality change bias in the calculation of the CPI A) i, ii, and iii B) i and ii C) i only D) ii only E) ii and iii
An exchange rate crisis may lead to a banking crisis and disintermediation
Indicate whether the statement is true or false
Legal entitlement to scientific discoveries, inventions, innovations and intellectual property
A) results in an equal distribution of income and profits. B) protects production on the basis of tradition, social customs and habits. C) encourages technological advancements. D) reduces the incentive to invest in research and development.
A nation joining a currency union must subject itself to the ______ policies of the union, which may or may not conform to its own objectives or economic or political values.
A) fiscal B) economic C) monetary D) accounting