The terms rational expectations and adaptive expectations are two different names for the same concept
Indicate whether the statement is true or false
False
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Use the LR curve to show what happens to output, the real interest rate, and the price level in the short run and in the long run if the government provides a tax credit to people who buy a new home, which leads to an increase in new housing
investment.
A tax of $5 per airplane ticket is _____
a. a unit tax b. an ad valorem tax c. an income tax d. a value-added tax
Which of the following reduces the effects of asymmetric information?
A) repeat purchases B) warranties C) building a reputation D) All of the above.
When negative externalities are present, it leads to an underallocation of resources in that area relative to that which is socially desirable
a. True b. False Indicate whether the statement is true or false