According to the rational expectations theory the rate of inflation largely depends on
A. business expectations of interest rate levels.
B. business expectations about international trade.
C. what people expect to happen to prices.
D. the unemployment rate.
C. what people expect to happen to prices.
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The IS curve shows the combinations of ________ and ________ where the goods market is in equilibrium
A) aggregate expenditure; real GDP B) the real interest rate; real GDP C) potential GDP; aggregate expenditure D) the nominal interest rate; the quantity of money
By using the market basket approach:
A. we get a more accurate picture of the changing cost of living than by simply averaging the changing prices of goods listed in the market basket. B. we get a clearer picture of the changing cost of living than by averaging the changing prices of all goods and services produced. C. it allows us to see how cost of living is affected by the changing prices of different goods relative to how much of each good you buy. D. All of these statements are true.
Refer to the information provided in Scenario 22.6 below to answer the question(s) that follow.SCENARIO 22.6: Following is information pertaining to four surveys:Survey 1: 50 pre-law students at Vanderbilt University are surveyed for a study to see if taking an LSAT preparation course was effective in improving their chance of being admitted to law school.Survey 2: 600 newly hired Houston-area elementary school teachers are surveyed for a study to determine how much salary they were willing to sacrifice to get a job teaching in a school with a high-quality reputation.Survey 3: 950 people are surveyed 6 months after buying a new car for a study to see how satisfied they are with their purchase.Survey 4: 75 people are surveyed in front of 5 different casinos on the Las Vegas Strip fo a
study to determine the average daily gambling budget of a Las Vegas visitor.Refer to Scenario 22.6. Of the four surveys, which is likely to be the most statistically significant? A. Survey 1 B. Survey 2 C. Survey 3 D. Survey 4
A payday loan company has decided to open several new locations in the city. To decide where to open these locations it hires consultants and pays them per store opened. At the end of the quarter, the company notices a many of the new stores' sales volume fail to meet expectations. To incentivize the consultants to instead focus on opening profitable stores, the company has decided to alter the
compensation to a percentage of the profit earned per new store. The company should expect to a. Pay the consultants more than they would per store b. Pay the consultants less than they would per store c. Pay the consultants the same d. None of the above