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The proponents of rational expectations believe that:
1. There will be a substantial time lag before people anticipate the eventual effects of a shift to a more expansionary macro-policy.
2. Macro-policies that stimulate demand and place upward pressure on the general level if prices will temporarily increase output and employment.
3. The inflationary side effects of expansionary policies will be anticipated quickly, and therefore, even their short-run effects on real output and employment will be minimal.
4. Discretionary changes in macro-policy can be made in a manner that will reduce the economic ups and downs of a market economy.
Identify one decision that you made in the Preview (for example, to attend the football game). List all the tradeoffs of that decision. In your list, circle your opportunity cost of that decision. Then explain why this is your opportunity cost.
A HEADLINE article in the text is titled Consumer are Spending Big Time. Determine which of the following is most likely to happens a result of increased consumer spending?
How government intervention in the form of a tax on producers can make the post-policy outcomes even worse than the pre-policy position and explain the underlying economic logic of this proposition.
Suppose that Sven has a V W Cabrio that he would like to sell. Unfortunately, the speedometer on the car is broken and in need of repair. Sven is accustomed to driving the car in this condition and it is worth $3,000 to him fixed or not. Sven would l..
Explain the relationship between the price of a resource and the quantity demanded of that resource with reference to supply, demand, and derived demand.
1. for each of the following two parts you must justify your answer. no explanation no credit.nbsp partially correct
Exchange in an island economy.robin and terry are stranded on a deserted island and consume two products, coconut and fish. In a day, robin can catch 2 fish or gather 10 coconuts, and terry can catch 1 fish or gather 1 coconut.
Computer software utilizes skilled labor relatively intensively.If trade between the U.S. and India is free, which good will the U.S. export and which will it import? What will happen to production of the two goods (increase or decrease) in the U...
want someone to help me write abour the essay which topic is profile two completely different people but see how their
the following relations describe demand and supply.q 700 - 100p 1 q -100 100p 2where p is price in dollar and q is
Comparative statics in Solow's Model
What is DynaLinear's breakeven sales volume (in units) for converters and calculate the degree of operating leverage at a projected volume of 14,000 units and explain what the DOL means.
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