Which of the following is an argument against trying to use policy to stabilize the economy?
a. Recessions represent a waste of resources.
b. Pessimism on the part of households and firms may become a self-fulfilling prophecy.
c. "Leaning against the wind" requires policymakers to increase aggregate demand in recessions and reduce aggregate demand in booms.
d. Macroeconomic forecasting is not developed sufficiently to allow policymakers to change aggregate demand at the proper time.
d
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In today's economy, dollar bills serve as money because
A) people have confidence that others will accept them as money. B) they are backed by gold. C) they have a value as a commodity independent of their use as money. D) they can be redeemed for gold by the Federal Reserve.
The purpose of __________ is to cover everyone over 65 years of age and reduce the financial burden of illness on the elderly
a. Social Security b. Medicaid c. Medicare d. AFDC e. Americorps