Macroeconomics 5th Edition by Olivier Blanchard

Exercise 1

Using the information in this chapter, label each of the following statements true, false, or uncertain. Explain briefly.
a. There is so much uncertainty about the effects of monetary policy that we would be better off not using it.
b. Elect a Democrat as president if you want low unemployment
c. There is dear evidence of political business cycles in the United States: low unemployment during election campaigns and higher unemployment the rest of the lime.
d. Rules are ineffective in reducing budget deficits.
e. Governments would be wise to announce a no-negotiation policy with hostage takers.
f. If hostages are taken, it is clearly wise for governments to negotiate with hostage takers, even if the government has announced a no-negotiation policy.
g. When a central bank announces a target inflation rate, it has no Incentive to deviate from the target.