Bundle: Principles of Economics, Loose-leaf Version, 8th + LMS Integrated MindTap Economics, 2 terms (12 months) Printed Access Card
8th Edition
ISBN: 9781337607735
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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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
Chapter 36 Solutions
Bundle: Principles of Economics, Loose-leaf Version, 8th + LMS Integrated MindTap Economics, 2 terms (12 months) Printed Access Card
Ch. 36.1 - Prob. 1QQCh. 36.2 - Prob. 2QQCh. 36.3 - Prob. 3QQCh. 36.4 - Prob. 4QQCh. 36.5 - Prob. 5QQCh. 36.6 - Prob. 6QQCh. 36 - Prob. 1CQQCh. 36 - Prob. 2CQQCh. 36 - Prob. 3CQQCh. 36 - Prob. 4CQQ
Ch. 36 - Prob. 5CQQCh. 36 - Prob. 6CQQCh. 36 - Prob. 1QRCh. 36 - Prob. 2QRCh. 36 - Prob. 3QRCh. 36 - Prob. 4QRCh. 36 - Prob. 5QRCh. 36 - Prob. 6QRCh. 36 - Prob. 7QRCh. 36 - Prob. 8QRCh. 36 - Prob. 9QRCh. 36 - Prob. 10QRCh. 36 - Prob. 1PACh. 36 - Prob. 2PACh. 36 - Prob. 3PACh. 36 - Prob. 4PACh. 36 - Prob. 5PACh. 36 - Prob. 6PACh. 36 - Prob. 7PACh. 36 - Prob. 8PA
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