Achieving full employment

Maintaining price stability

Promoting economic growth

All of the above

Setting interest rates

Conducting open market operations

Maintaining the stability of the financial system

All of the above

Fiscal policy is implemented by the government, while monetary policy is implemented by the central bank.

Fiscal policy involves taxation and government spending, while monetary policy involves interest rates and money supply.

Fiscal policy affects the overall level of economic activity, while monetary policy affects the cost and availability of money.

All of the above

They are positively correlated.

They are negatively correlated.

They are independent of each other.

The relationship is complex and depends on various factors.

A graphical representation of the relationship between inflation and unemployment.

A model that predicts the trade-off between inflation and unemployment.

A policy tool used to control inflation and unemployment.

None of the above

The tendency for policymakers to change their policy goals over time.

The inability of policymakers to commit to long-term policies.

The conflict between short-term and long-term policy objectives.

All of the above

Expectations can influence economic behavior and outcomes.

Expectations can be self-fulfilling.

Expectations can be managed through communication and policy actions.

All of the above

The assumption that economic agents form expectations based on all available information.

The belief that economic agents can perfectly predict future economic outcomes.

The idea that economic agents make decisions based on their subjective beliefs.

None of the above

The argument that economic policies cannot be evaluated using historical data.

The claim that economic models are not reliable for policy analysis.

The belief that economic policies should be based on theoretical models.

None of the above

A state where economic forces are balanced and there is no tendency for change.

A condition where supply and demand are equal.

A situation where there is no unemployment or inflation.

None of the above

To correct market failures.

To promote economic stability.

To redistribute income and wealth.

All of the above

Costs or benefits that are imposed on third parties as a result of economic activities.

The unintended consequences of economic decisions.

The spillover effects of economic policies.

All of the above

To promote economic growth.

To improve economic efficiency.

To enhance consumer welfare.

All of the above

The ability of a country to produce a good or service at a lower opportunity cost than another country.

The specialization of countries in producing goods and services in which they have a comparative advantage.

The benefits that countries gain from engaging in international trade.

All of the above

To define property rights.

To enforce contracts.

To provide a framework for economic transactions.

All of the above