Given the Uncertainty About the Effects of Macro Policy,economists Generally

question 13

Multiple Choice

Given the uncertainty about the effects of macro policy,economists generally propose that

• A)macro policies should be more active, the lower the level of unemployment or inflation.
• B)changes in money growth should only be used for fine tuning the economy, not for correcting large imbalances (such as high inflation).
• C)money growth should be set at zero by constitutional amendment.
• D)elected officials should have more input in the determination of monetary policy.
• E) none of the above

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Definitions:

Selling Price

The price at which a service or product is sold to a buyer.

Net Operating Income

The total profit of a company after subtracting operating expenses but before interest and taxes.

Operating Income

Income generated from regular business operations, excluding any investment income, taxes, or extraordinary items.

Selling Price

The amount of money charged for a product or service.