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Important information about rational expectations theory
1. Which of the following theories of expectations holds that individuals usa all information available in forming expectations?Rational expectations theoryCertainty equivalent theoryExpected value analysisAdaptive expectations theory
2. The only school of economics that could be construed as advocating big government are the :classicalskeynesiansmontearistssupply-sider
3. Proponents of the monetarist approach to economic stabilzation think that the growth of the money supply should be equal to the:prime ratelong-term average growth of real outputreal interest rategrowth of federal expenditures
4. A conclusion of the theory of rational expectations is that the impact of discretionary fiscal polices designed to shift the aggregate demand curve will:result in no net change in aggregate demandbe anticipated and compensated for, causing no significant in real GDP or employment levelsbe completely opposite of the intended resultbe incorrectly evaluated by most economist
Compute the implied arc income elasticity of demand. Holding all else equal, would a further increase in price result in higher or lower total revenue.
Use the above data to answer the following questions-If the price of entertainment increases by 2 percent, what will happen to the quantity of food demanded? Please be specific
Illustrate what would you expect BRL-USD to do and by how much in one year.
Explain what are the factors you identified similar or dissimilar for the embezzlement and burglary plots.
Explain how many popsicles will be sold every day in the short run if the price rises to $2 each. In the long run, if the price rises to $2 each.
You are the manager of an organization in America that distributes blood to hospitals in all 50 states and the District of Columbia.
Shelly's preferences for consumption and leisure can be expressed as. This utility function implies that shelly's marginal utility of leisure is C-200 and her marginal utility of consumption is L-80.
Explain how much will your company's total revenues revenues from both products change if you increase the price of good X by 1 percent.
Suppose a production function is given by f(K;L) = KL 2 What combination of labour and capital minimizes the cost of producing any given output?
Define and describe the difference between the absolute advantage and the comparative advantage.
Using a supply and demand graph, make one shift of wither the supply or demand curve to illustrate the likely result of this action.
Maggie's utility function is and her income is $5000. Then her MRS at generic bundle (x1, x2) is 50-0.25x1. Commodity 2 is a composite good, and hence its price is unity.
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