On the Basis of Both Theory and Empirical Evidence, Most

question 54

Multiple Choice

On the basis of both theory and empirical evidence, most economists believe that changes in monetary policy have

• A)important long- run effects by changing real interest rates.
• B)no effect on real GDP or inflation in the long run.
• C)no effect on real GDP or factor utilization in the short run.
• D)no long- run effect on real GDP but a substantial long- run effect on inflation.
• E)powerful effects on real GDP and factor prices both in the short run and in the long run.

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Definitions:

Job Applicant

An individual who applies for a position within an organization and undergoes the selection process.

Implicit Association Test (IAT)

A psychological test designed to detect the strength of a person's automatic association between mental representations of objects (concepts) in memory.

Racial Prejudices

Preconceived opinions or judgments about individuals or groups based on their race, often without full knowledge or facts.

Stereotypes

Generalized beliefs or assumptions about the characteristics, attributes, and behaviors of members of a certain group, often oversimplified and not based on personal experience.