Professor I.M. Dismal returns to campus in the fall to find that the bookstore is charging 10% more for the new economics textbooks he ordered this year compared to last year
On the basis of this information, and using the economic way of thinking, what can Professor Dismal clearly conclude? A) The economy has experienced a 10% inflation over the year.
B) The economy has experienced a 10% deflation over the year.
C) The economy has experienced a disinflation over the year.
D) The economy has experienced a steady price level over the year.
E) The bookstore is charging 10% more for the new textbooks he ordered this year compared to last year.
E
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The hypothesis stating that people combine the effects of past policy changes on important economic variables with their own judgment about the future effects of future and current policy changes is known as
A) policy irrelevance hypothesis. B) rational expectations hypothesis. C) life cycle hypothesis. D) real business cycle hypothesis.
Research and development is most likely to have an impact on the _____
a. quantity of labor available b. quantity of capital goods available c. quality of labor available d. quality of capital goods available e. use of energy
Private property rights imply that people can own things, and they can do what they want with what they own even if they infringe on the private property rights of others
a. True b. False Indicate whether the statement is true or false
Business taxes fall. This raises __________, which raises __________ and the __________ curve shifts rightward
A) consumption; aggregate demand (AD); AD B) investment; government purchases; AD C) investment; aggregate demand (AD); AD D) net exports; aggregate demand (AD); AD E) none of the above