Discretionary policy advocates believe:
a. that there is a high cost associated with the use of a discretionary policy
b. that self-corrective forces in an economy work slowly.
c. that natural adjustments of wages and prices can help attain potential output.
d. in rational expectations.
e. that an active stabilization policy imposes troubling fluctuations in the price level and real GDP.
b
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Consumers expressed outrage at the high price of chainsaws after Hurricane Andrew hit Florida and Louisiana, with newspaper editorials accusing suppliers of unconscionable price gouging. Use a supply and demand graph to assist in explaining the increase in the price of chain saws after Hurricane Andrew
A decision matrix:
A. summarizes the players, strategies, and payoffs associated with a game. B. outlines the clear outcome of any strategy-based game. C. shows only the decisions of one player. D. is not useful in evaluating the strategic choices.