Economic Analysis Suggests That Countercyclical Macro-Policy Will

question 56

Multiple Choice

Economic analysis suggests that countercyclical macro-policy will

• A) be difficult to time properly because of uncertainty about the future direction of the economy.
• B) be difficult to implement because we do not know whether monetary policy is transmitted through the interest rate, or whether it affects aggregate demand directly.
• C) reduce the natural rate of unemployment when macro-policy is persistently expansionary.
• D) help reduce economic instability if, and only if, we are willing to tolerate double-digit inflation.

Identify different leadership styles.

Understand the characteristics unique to each leadership style.

Recognize the management traits associated with specific leadership styles.

Differentiate between the leadership styles based on their concern for people versus task.

---

Definitions:

Median-Voter Model

A theoretical model in political science and economics predicting that the outcome of majority rule voting will reflect the preferences of the median voter.

Socially Efficient Outcome

An economic situation where resources are allocated in a way that maximizes the aggregate welfare of society.

Government Bureaucracies

Complex administrative structures and procedures established by governments to manage their functions and processes.

Profit Motive

The incentive that drives individuals or entities to engage in activities that they expect will yield financial gain.