In a situation where a market failure occurs,
A. any government intervention will improve on the market outcome.
B. there is nothing that the government can do to improve on the market outcome.
C. government intervention might improve on the market outcome.
D. it will always be preferable to have the government intervene in the market.
C. government intervention might improve on the market outcome.
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Compared to money-market instruments, capital-market instruments are of ________ maturity and are generally ________ risky
A) shorter, less B) shorter, more C) longer, less D) longer, more
Common sense suggests (and macroeconomists agree!) that sustained economic growth over extended time periods is more important than the economy's short-term fluctuations
Why, then, do macroeconomists (and policymakers, and the general public) care so much about the business cycle?