Author Question: Given the uncertainty about the effects of macro policy, economists generally propose that A) ... (Read 111 times)

appyboo · **on:** Jun 30, 2018

Given the uncertainty about the effects of macro policy, economists generally propose that

A) macro policies should be more active, the lower the level of unemployment or inflation.
B) changes in money growth should only be used for fine tuning the economy, not for correcting large imbalances (such as high inflation).
C) money growth should be set at zero by constitutional amendment.
D) elected officials should have more input in the determination of monetary policy.
E) none of the above

Question 2

Assume that an economy experiences both positive population growth and technological progress. Once the economy has achieved balanced growth, we know that the capital per effective worker ratio (K/NA) is

A) growing at a rate of + gA + gN.
B) growing at a rate of gA + gN.
C) growing at a rate of gN.
D) growing at a rate of gA.
E) none of the above