Multiple Choice
The theories and models of macroeconomics are used to
A) produce studies that explain major macroeconomic events of the past.
B) produce studies and understanding that can guide the design of economic policy in its attempt to avoid damaging periods of high inflation, high unemployment, or both.
C) produce studies with which future business cycles can be forecast.
D) produce analyses of how various macroeconomic policies interact.
E) all of the above.
Correct Answer:

Verified
Correct Answer:
Verified
Q25: An important distinction between the long-run and
Q26: An assumption central to the short run
Q27: The assumption to ignore inventory adjustment in
Q28: Short-term departures from equilibrium may be caused
Q29: The income identity Y = C +
Q30: Let taxes be fixed and equal to
Q31: Short-run adjustments to changes in the economic
Q32: Macroeconomic equilibrium is stable in the simple
Q34: The distinction between spending balance and equilibrium
Q35: <sup>Let taxes be set equal to </sup><sup>T