Why do the owners of good-quality used cars stay away from the market for used cars?
What will be an ideal response?
Only the owners of used cars know about the true quality of their cars, but buyers do not. Therefore, buyers are often not willing to pay a high price for used cars, thinking that the car they buy might be a lemon. As a result, it becomes unprofitable for owners of good-quality cars to sell their cars.
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Use aggregate supply and demand analysis to explain real business cycle theory.
What will be an ideal response?
Once the FOMC announces the result of its meeting the attendees:
A. never discuss the policy issues addressed in the meetings. B. observe a blackout period that lasts for a week following the meeting during which they do not speak publicly about the economic outlook or current monetary policy. C. observe a twenty-four hour blackout period following the meeting during which they do not speak publicly about the economic outlook or current monetary policy. D. it must brief the financial news immediately after and answer questions posed to them.