Author Question: Which of the following macroeconomic variables is most dependent on whether the government pursues ... (Read 181 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?

The Centers for Disease Control and Prevention has released reports detailing the deaths of infants (younger than 1 year of age) who died after being given cold and cough medications. This underscores the importance of educating parents that children younger than 2 years of age should never be given over-the-counter cold and cough medications without consulting their physicians.

Did you know?

Oliver Wendell Holmes is credited with introducing the words "anesthesia" and "anesthetic" into the English language in 1846.

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

Did you know?

Medications that are definitely not safe to take when breastfeeding include radioactive drugs, antimetabolites, some cancer (chemotherapy) agents, bromocriptine, ergotamine, methotrexate, and cyclosporine.

Did you know?

Nitroglycerin is used to alleviate various heart-related conditions, and it is also the chief component of dynamite (but mixed in a solid clay base to stabilize it).

For a complete list of videos, visit our video library