Multiple Choice
Which of the following is consistent with an active approach to policy?
A) The natural rate of unemployment is uncertain.
B) Wages and prices adjust relatively quickly.
C) The short-run aggregate supply curve is slow to shift in the presence of a recessionary gap.
D) The size of the multiplier is irrelevant.
E) Self-correction lags are not a problem.
Correct Answer:
Verified
Correct Answer:
Verified
Q8: If the economy were in a recession,which
Q10: Those of the rational expectations school<br>A)favor monetary
Q11: The time it takes for a new
Q15: The time inconsistency problem arises when<br>A)attempts are
Q16: Exhibit 16-3 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4914/.jpg" alt="Exhibit 16-3
Q17: Exhibit 16-4 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4914/.jpg" alt="Exhibit 16-4
Q23: Before discovering that the short-run Phillips curve
Q32: Some economists believe that in the long
Q60: Contrary to what the Phillips curve would
Q143: The long-run Phillips curve suggests that changing