A. is not sufficiently stimulating or contracting the economy at any time
B. is effective
C. is stimulating or contracting the economy at the wrong times
D. is desirable
Related Mcqs:
- The Tragedy of the Commons is a parable that illustrates why?
A. common resources are overconsumed
B. public goods are underproduced
C. private goods are under consumed
D. natural monopolies overproduce goods. - If a country’s policy makers were to continuously use expansionary monetary policy in an attempt to hold unemployment below the natural rate the long-run result would be ?
A. an increase in the level of output
B. a decrease in the unemployment rate
C. an increase in the rate of inflation
D. All of these answers - According to the Phillips curve, in the short run, if policy makers choose an expansionary policy to lower the rate of unemployment ?
A. The economy will experience an increase in inflation
B. The economy will experience a decrease in inflation
C. Inflation will be unaffected if price expectations are unchanging
D. None of these answers - Suppose a wave of investor and consumer optimisms has increased spending so that the current level of input exceeds the long-run natural rate If policy makers choose to engage in activist stabilization policy they should ?
A. decrease government spending Which the shifts the aggregate demand curve to the left
B. decrease taxes, which shifts the aggregate demand curve to the right
C. decrease taxes, which shifts the aggregate demand curve to the left
D. decrease government spending which shifts the aggregate demand curve to the right - In the early eighties, the Federal Reserve pursed a tight monetary policy. All else being equal. the impact of that policy was to interest rates in the United States relative to those in Europe and cause the dollar to _______ against European currencies?
A. decrease; depreciate
B. decrease; appreciate
C. increase; depreciate
D. increase; appreciate - The misery index Which some commentators suggest measures the health of the economy, is ?
A. The sum of the growth rate of output and the inflation rate
B. The sum of the natural rate of unemployment and the actual rate of unemployment
C. The sum of the inflation rate and the central bank’s refinancing rate
D. The sum of the unemployment rate and the inflation rate - Economists suggest that an optimum tariff would be one which reduce imports to a point where___________?
A. Comparative advantage is achieved
B. Price elasticity of imports is unity and tariff revenue is maximized
C. import prices are the same as export prices
D. marginal social cost equals marginal social benefit - One of the main advantages of trade economists suggest is ?
A. technological change
B. competitions with foreign suppliers
C. development of tourism
D. lower tariffs - Positive cross elasticities suggest that goods are ____ and negative cross-elasticities that goods are ?
A. substitutes inferior
B. normal, complements
C. substitutes complements
D. normal, inferior - Which of the following factors has been suggest as an explanation for the lack of economic growth in many poor nations ?
A. The constraints imposed by dependency on the already-developed nations
B. A steady rate of capital formation
C. An adequate level of social overhead capital
D. The supply of human resources is too high
