Time inconsistency is a problem when policymakers
a. have no flexibility in setting policy.
b. follow inflexible rules.
c. have discretion in their policy responses to changes in economic conditions.
d. does not follow the Taylor rule.
e. none of the above.
B
Economics
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When individuals form an alliance to ensure that all members will volunteer in case of a volunteer's dilemma, this is called
A) compulsory volunteerism. B) coalition building. C) bargaining. D) eminent domain.
Economics
Which of the following provides a tool by which you can measure overall price changes paid by representative individuals living in urban households?
(a) The GDP Deflator ( NGDP/RGDP 100, expressed as a percentage ) (b) The Producer Price Index (c) The Consumer Price Index (d) The Housing Price Index
Economics