The "rational expectations revolution" refers to a substantial change in the thinking of ________
A) households and businesses
B) policy makers
C) macroeconomists
D) elected officials
C
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To face scarcity means individuals
A) choose. B) economize. C) sacrifice some plans over others. D) all of the above.
Which of the following statements is false?
A) The market value of all nonmarket goods is omitted from GDP. B) The sale of used goods is omitted from GDP. C) The market value of a person mowing his or her own lawn is omitted from GDP. D) If a good is produced but not sold, it is included in GDP.
When considering the running of a corporation, there is a principal-agent problem between shareholders and the CEO because
A. shareholders cannot observe all of the CEO's decisions. B. shareholders require the firm to pay a dividend. C. shareholders sign confidentiality agreements. D. the CEO is paid in part with stock options. E. shareholders want the firm to maximize the firm's share price while the CEO wants to maximize profits.
When we graph consumption as a function of ________ rather than as a function of disposable income, the slope of this consumption function is ________.
Fill in the blank(s) with the appropriate word(s).