Extrapolative expectations are expectations that:
A. are consistent with economists' expectations.
B. a trend will continue.
C. a trend will reverse.
D. are consistent with trending expectations.
Answer: B
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The real output of the economy under conditions of full employment
A. is determined by the real-balance effect. B. is long-run aggregate demand. C. happens only when there is no inflation. D. is long-run aggregate supply.
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A. George W. Bush administrations. B. Bill Clinton administrations. C. Barack Obama administrations. D. Consumption expenditures decreased during all of the above administrations.