The rational expectations view that expectations regarding policy and its effects are important to consider:
A. Serves as the primary rationale for the Laffer Curve
B. Is now accepted by most mainstream economists
C. Is consistent with the monetary rule calling for a constant rate of growth in the money supply
D. Is challenged by research indicating that expectations have little economic effect
B. Is now accepted by most mainstream economists
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The above (incomplete) table provides information about the relationships between labor and various product measures. The amount of labor that maximizes the marginal product of labor is
A) 2 units of labor. B) 3 units of labor. C) 4 units of labor. D) 5 units of labor.
The increase in speed and power of personal computers over the past fifteen years has been phenomenal. Such technological change, with the old being ever more quickly replaced by the new, suggests growing ________ in ________ investment
A) instability, net B) instability, net and gross C) instability, gross D) stability, net and gross E) stability, net
If the price level in the United States rises less than the increases in the price levels of other countries, exports of U.S.-made goods will increase
Indicate whether the statement is true or false
If sellers respond to very small changes in price by adjusting their quantity supplied by extremely large amounts, the price elasticity of supply approaches
a. zero, and the supply curve is horizontal. b. zero, and the supply curve is vertical. c. infinity, and the supply curve is horizontal. d. infinity, and the supply curve is vertical.