The Lucas supply function states that real output can change from its fixed level
A. only if there is a positive price surprise.
B. only if there is a negative price surprise.
C. only if there is no price surprise.
D. Both A and B are possible.
Answer: D
You might also like to view...
The proposed takeover of Tony's Airlines by Plummet Airlines will result in increased profits for Plummet and increased air fares for consumers. This is an example of
a. widespread distribution of benefits and costs b. concentrated distribution of costs and benefits c. concentrated distribution of benefits and widespread distribution of costs d. concentrated distribution of costs and widespread distribution of benefits e. logrolling
In the short-run macro model, which of the following increases when government spending increases?
a. The interest rate b. Investment spending c. Taxes d. Spending on consumer durables e. The money supply
If a country has the comparative advantage in producing a product, then that country must also have the absolute advantage in producing that product
a. True b. False Indicate whether the statement is true or false
The process of flaw coordination that economic theory describes is called a "mutual adjustment process" because
What will be an ideal response?