Politicians and Economists Who Are Generally Conservative Tend to Believe

question 55

Multiple Choice

Politicians and economists who are generally conservative tend to believe that

• A)the self-correcting mechanism is slow and unpredictable.
• B)the short-run Phillips curve is relatively steep.
• C)the costs of unemployment are high.
• D)expectations in reaction to policy measures are very slow to change.

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Definitions:

Semiannual Interest

Interest calculated and paid twice a year, often related to bonds or loans with fixed interest rates.

Straight-line Method

A technique for computing depreciation or amortization that evenly divides the asset's cost over its expected lifespan.

Bond Liability

An obligation or debt represented by bonds issued by a company, which it is required to repay at a specified time with interest.