Adaptive expectations are "__________" according to the New Classical economists because they __________ information it is possible to use in making a forecast
A) rational; include all
B) rational; exclude some
C) irrational; include all
D) irrational; exclude some
D
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Use the following table to answer the next question.YearNominal Income (dollars)CPIReal Income (dollars)1$44,600130 2$48,200 $35,1833$51,000139 What is the value of real income in Year 1?
A. $343 B. $44,600 C. $57,980 D. $34,308
If the price level in the United States increases, domestic goods will become relatively more expensive than foreign goods. Consumers will import more and reduce the quantity of domestic goods and services they buy
a. True b. False Indicate whether the statement is true or false
A perfect competition market has which of the following?
a. Only productive efficiency b. Only allocative efficiency c. Neither allocative or productive efficiency d. Has both allocative and productive efficiency
A restaurant that has market power can
a. minimize costs more efficiently than its competitors. b. influence the market price for the meals it sells. c. reduce its marketing budget more than its competitors. d. ignore profit-maximizing strategies when setting the price for its meals.