Long-run equilibrium in the goods and services market requires that decision makers who agreed to long-term contracts must have
a. incorrectly anticipated the level of prices when they made the agreements.
b. correctly anticipated the level of prices when they made the agreements.
c. correctly anticipated the natural rate of unemployment when they made the agreements.
d. correctly anticipated actual GDP when they made the agreements.
B
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The supply of bonds to the bond market
a. is positively related to the demand for stocks b. is inversely related to the interest rate c. is positively related to income d. is positively related to the demand for bonds e. only changes if new bonds are issued
Direct controls on polluting activity
a. have never been tried as an instrument of environmental policy. b. have been the chief instrument of environmental policy. c. have been rejected as a tool of environmental policy. d. are the tool of future environmental policy, based on 1993 legislation.