According to rational expectations theory, what information do businesses and workers use when they form their expectations regarding inflation?
a. Recent events and data.
b. Keynesian and monetarist models.
c. Forecasts by public-and private-sector economists.
d. All the relevant information that is available.
d
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The income that people receive is called:
a. national income. b. personal income. c. disposable personal income. d. transfer payments.
Does the monopolist have an incentive to reduce cost under average cost pricing? How can this be overcome?
If the MPC were .75, what change in government spending (in billions of dollars) would be required to cause the equilibrium level of GDP to fall by 100?
A. A decrease of 25. B. A decrease of 50. C. A decrease of 75. D. A decrease of 100.
What did the high-growth Asian economies do to share wealth across all levels of society?
What will be an ideal response?