Attempts to fine-tune the economy through shifts in fiscal and ...

[Destiiny22]

Attempts to fine-tune the economy through shifts in fiscal and monetary policy
 
  A) cannot alter the level of unemployment but may change the price level.
  B) may not do any good but certainly do no harm.
  C) produce greater stability, but only at the cost of an ever-increasing national debt.
  D) will increase rather than reduce instability if the policy makers lack adequate information.

Question 2

Beth has moved into a new house. Most people living in her neighborhood go for a jog early in the morning. Although Beth had always been a late riser, she too started getting up early for a jog after moving into her new house.
 
  This is an example of a(n) ________. A) moral hazard
  B) adverse selection
  C) peer effect
  D) negative externality

[dmurph1496]

Answer to Question 1

D

Answer to Question 2

C

[Destiiny22]

Excellent

[mohan]

Gracias!