Author Question: Which of the following macroeconomic variables is most dependent on whether the government pursues ... (Read 165 times)

Lisaclaire

  • Hero Member
  • *****
  • Posts: 569
Which of the following macroeconomic variables is most dependent on whether the government pursues an active approach to policy or a passive approach to policy?
 a. Aggregate supply
 b. Aggregate demand
  c. Money demand
 d. Money supply
 e. Interest rate

Question 2

According to the rational expectations school, _____.
 a. on average people have very little idea of what to expect from government policy makers
 b. people form expectations by focusing only on the private sector
 c. changes in the expected price level shift the aggregate demand curve
 d. people do not consider likely government policies when forming expectations, choosing to remain rationally ignorant
  e. people form expectations, in part, by considering the probable future actions of government policy makers



enass

  • Sr. Member
  • ****
  • Posts: 380
Answer to Question 1

a

Answer to Question 2

e



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

More than 2,500 barbiturates have been synthesized. At the height of their popularity, about 50 were marketed for human use.

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

Colchicine is a highly poisonous alkaloid originally extracted from a type of saffron plant that is used mainly to treat gout.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

For a complete list of videos, visit our video library