PRINC OF ECONOMICS PKG >CUSTOM<
PRINC OF ECONOMICS PKG >CUSTOM<
7th Edition
ISBN: 9781305018549
Author: Mankiw
Publisher: CENGAGE C
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Chapter 36, Problem 4PA
To determine

Positive and Normative statement.

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Macroeconomics: The Big Picture – End of Chapter Problem a. How did Milton Friedman alter the consensus that had developed in the aftermath of the Great Depression on how the economy should be managed? He developed policy measures that enable the government to intervene to move the business cycle into recession or growth precisely as needed. He observed that bo0oms, as well as busts, need to be managed to reduce volatile swings in the business cycle. He demonstrated that fiscal policy worked better than monetary policy when fighting recessions. He provided theoretical evidence that the economy is self-correcting in the short run but needs government intervention in the long run. b. What is the current goal of policy makers in managing the economy? To maximize the profits of corporations and the wages of labor To eliminate any and all busts or recessions To reduce the magnitudes of booms and busts To completely eliminate unemployment
What is the answer for the question  Despite their differences, with which proposition are two economists chosen at random most likely to agree?  A) Employers should not be restricted from outsourcing work to foreign nations.  B) Centeral Banks should focus more on mainstreaming low unemployment than on maintaining low inflation.  C) Business managers can raise profit by reducing costs than by raising revenue.
Explain the role of science in policymaking
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