Policy makers should stick to rules instead of pursuing discretionary polices. Do you agree with the above statement? Substantiate your answer.

Policy makers should stick to rules instead of pursuing discretionary polices. Do you agree with the above statement? Substantiate your answer.

Non-accelerating Inflation Rate of Unemployment

Explain how the permanent income hypothesis reconciles the difference between short-run and long-run consumption behavior.

Explain how the permanent income hypothesis reconciles the difference between short-run and long-run consumption behavior.

Rational expectations and adaptive expectations

Explain why firms may offer a higher wage to workers than the equilibrium wage rate