The __________ theory holds that people will expect fiscal and monetary policies to have certain effects and that they will take actions that make these policies ineffective.
Fill in the blank(s) with the appropriate word(s).
rational expectations
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A country has domestic investment of $200 billion. Its citizens purchase $600 of foreign assets and foreign citizens purchase $300 of its assets. What is national saving?
a. $400 billion b. $500 billion c. $600 billion d. $800 billion
Output per labor-hour is used to measure the ________ of labor.
A. intelligence B. seriousness C. productivity D. effort
For a firm, its economic profit is usually greater than its accounting profit.
Answer the following statement true (T) or false (F)
The level of income is unchanged in response to anticipated anti-inflation policy in ________
A) real business cycle theory B) traditional Keynesian theory C) new Keynesian theory D) post classical theory