Under adaptive expectations, the expected current value of a variable does not depend on a recently observed value of the variable.
Answer the following statement true (T) or false (F)
False
Rationale: FEEDBACK: Under adaptive expectations, the expected current value of a variable adapts to a recently observed value of the variable.
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Both The Wealth of Nations and the Declaration of Independence share the point of view that
a. every person is entitled to life, liberty, and the pursuit of happiness. b. individuals are best left to their own devices without the government guiding their actions. c. the government plays a central role in organizing a market economy. d. because of human nature a strong legal system is necessary for a market system to survive.
How is the dividing line between poverty and nonpoverty measured? Does this method overstate the degree of poverty?
What will be an ideal response?
According to proponents of behavioral economics, because every possible choice cannot be considered, an individual will tend to fall back on methods of making decisions that are simpler than trying to sort through every single possibility, known as
A. rational options. B. irrational choices. C. rules of thumb. D. normative decisions.
The Lost Decade refers to the years between approximately
A) 1980 and 1990. B) 1987 and 1997. C) 1972 and 1980. D) 1960 and 1970.