According to economists of the rational expectations school, _____
a. the passive approach must be adopted because they believe the economy is too complex
b. individual forecasts about policies can never be right
c. anticipated monetary policy can affect the output level
d. discretionary policy can stabilize the economy
e. discretionary policy should be completely avoided
e
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Indicate whether the statement is true or false
Lorenz curves tell us about the
A. absolute distribution of income. B. poverty line. C. incidence of malnutrition. D. relative distribution of income.
Country X has a high unemployment rate. It follows that country X is operating
A) beyond its production possibilities frontier (PPF). B) on its PPF. C) inside (below) its PPF. D) at a productive efficient point. E) b and d
Which of the following is likely to lead to a decrease in the demand for tennis balls?
A. An increase in the expected future price of tennis balls. B. An increase in the price of tennis racquets. C. An increase in the price of tennis balls. D. An increase in the price of the rubber used to make tennis balls.