According to the theory based on rational expectations and flexible wages and prices,
A) only the combination of discretionary fiscal policy and conservative monetary policy can affect real GDP in the long run.
B) neither fiscal nor monetary policy influence real GDP in the long run.
C) fiscal policy has less effect on real GDP than monetary policy in the long run.
D) monetary policy has less effect on real GDP than fiscal policy in the long run.
B
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Fiscal and monetary policy can reduce unemployment with no negative side effects
a. True b. False Indicate whether the statement is true or false
A four-firm concentration ratio measures
A) the extent to which industry sales are concentrated among the four largest firms in the industry. B) the price elasticity of demand among the four largest firms in an industry. C) the number of firms in an industry. D) the price elasticity of demand in an industry.