The hypothesis suggesting that people combine the effects of past policy changes on economic variables with their own judgment about the future effects of current and future economic policy is referred to as the
A) passive expectations hypothesis. B) adaptive expectations hypothesis.
C) rational expectations hypothesis. D) active expectations hypothesis.
C
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The word "fiat" is
A) used to describe today's money because it is money set by law. B) used to describe money from when Kings ruled by decree or fiat. C) the term used to define the concept of barter. D) another word to mean the "double coincidence of wants." E) Latin for "backed by gold."
Aggregate demand
A) decreases if expected future income rises. B) increases if the exchange rate rises. C) increases if government expenditures decrease. D) increases if the expected inflation rate increases. E) increases if aggregate supply increases.
Cost effective technologies to reduce pollution are most likely to result from
A) marketable pollution permits. B) pollution charges. C) taxes. D) pollution limits. E) quotas.
Q = K1/2L1/2 w = $2, r = $2 The firm would like to know the minimum cost of producing 2000 units of output. Find the combination of inputs that minimizes the cost of producing 2000 units, the total cost, and identify the expansion path
What will be an ideal response?