Economists who favor activist monetary policy often argue that
A) during the mid-1970s, money supply growth rates were nearly constant and still the economy went through a recession.
B) during the mid-1970s, activist monetary policy was applied and the economy was healthy and stable.
C) activist monetary policy is inflexible and this is one of its virtues; the money supply doesn't change every year in response to political considerations.
D) activist monetary policy is likely to be destabilizing most of the time, but still it is the better way to proceed.
A
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In a duopoly with a collusive agreement and in a one-time only game, a firm's profit is largest if it ________ the agreement and if the other firm ________ the agreement
A) complies with; complies with B) complies with; cheats on C) cheats on; complies with D) cheats on; cheats on
The economy is in long-run equilibrium when Senator Soldout argues that the Fed should do more to fight unemployment. He argues that if the Fed increased the money supply faster, more workers would find jobs. The Senator's argument
a. is completely correct. b. is completely wrong. c. is true for the short run but not the long run. d. is true for the long run but not the short run.