If people behave according to rational expectations theory, people would expect the rate of inflation this year to be:
a. the same as last year.
b. zero, regardless of the rate last year.
c. the rate based on predictable monetary and fiscal policies.
d. All of these.
c
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When a collective action problem exists, the government often has the ability to direct behaviors in ways that make society better off
Indicate whether the statement is true or false
Refer to Figure 9.7. Because of this policy, total producer surplus including funds received from the government will be at least
A) $10,000. B) $40,000. C) $80,000. D) $100,000. E) $160,000.
One way the government can enhance efficiency through the management of common resources is by:
A. setting quotas for the good. B. banning the good. C. government provision of the good. D. All of these can be effective and efficiency-enhancing solutions.
Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C