How do the hierarchical and dual mandates differ in terms of macroeconomic consequences?
What will be an ideal response?
A dual mandate implies more tolerance of inflation than a hierarchical mandate. Ceteris paribus, the creation and purchasing power of wealth receive more support from a hierarchical mandate. A dual mandate implies less tolerance of positive output gaps and more support for aggregate demand.
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The economic way of thinking includes:
A) more attention paid to benefits rather than the costs involved in any choice. B) the assumption that individuals choose to average out some objective. C) emphasis on how choices are made at the margin. D) the notion that the industrialized nations have solved the problem of scarcity.
Suppose the population (age 16 and over) of Vietnam is 100 million; 5 million are unemployed, and 40 million hold jobs. The labor force participation rate in Vietnam is
a. 10 percent. b. 45 percent. c. 50 percent. d. 90 percent.