When monetary policies result in a worsening of economic performance, the least likely explanation is ________
A) a political business cycle
B) changes in one or more key structural parameters of the economy
C) a policy-induced change in the expectations and behaviors of households and businesses
D) faulty interpretation of incomplete and ambiguous economic data
A
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The table above shows the production possibilities for an economy. The opportunity cost of a loaf of bread is ________ when moving from possibility B to possibility C
A) 1/2 of a book B) 2 books C) 200 books D) 100 loaves of bread E) 1 loaf of bread
The idea that hysteresis plays a role in macroeconomics implies that
a. monetary policy can have an effect on the natural rate of unemployment. b. workers can overreact to changes in monetary policy. c. stabilization policy is ineffective and counterproductive. d. fiscal policy is ineffective and counterproductive.