Author Question: Which of these is an advantage of long-term contracts in resource markets? a. Long-term contracts ... (Read 131 times)

Pea0909berry · **on:** Jun 30, 2018

Which of these is an advantage of long-term contracts in resource markets?
a. Long-term contracts decrease the duration of recessionary gaps.
b. Long-term contracts reduce unemployment below its natural rate.
c. Long-term contracts help avoid recession in an economy.
d. Long-term contracts increase the flexibility of nominal wages.
e. Long-term contracts reduce the average cost of negotiation.

Question 2

Over the past 40 years, the most frequent target for the Fed's monetary policy has been the:
a. prime interest rate.
b. federal funds rate.
c. M1 money supply.
d. M2 money supply.
e. required reserve ratio.