One similarity between the policy recommendations of the new classical and monetarist models is that
a. both believe that monetary policy has much stronger employment effects than does fiscal policy.
b. are policy activists.
c. both believe in the natural rate of output.
d. both believe that discretion is preferable to rules.
e. none of the above.
C
You might also like to view...
Suppose a monopoly produces film and cameras. Consumers demand pictures, which require film and one camera
Two different types of consumers have the following demand for film, qA = 100 - 10p and qB = 80 - 10p. The monopoly cannot price discriminate in the market for film or the market for cameras, but it can bundle the products. The monopoly produces film at a constant marginal cost of $1 per roll. What price will the monopoly set for film and for cameras?
Kelly is a U.S. citizen who works for Burton located in Germany. Kelly's work contributes to:
A. U.S. GDP, but not U.S. GNP. B. U.S. GNP, but not U.S. GDP. C. Germany's GNP and U.S. GDP. D. U.S. GNP and U.S. GDP.