According to the rational expectations hypothesis, the occurrence of unemployment is due to
A. downwardly rigid wages.
B. imperfect information.
C. unpredictable shocks.
D. a deficient level of aggregate demand.
Answer: C
You might also like to view...
From a management policy perspective, which regression result is the most useful?
A) a regression equation that passes the F-test B) a regression equation whose explanatory variables all pass the t-test C) a regression equation that has the highest R2 D) a regression equation that has the least number of dummy variables
Which is not a determinant of demand?
a. The cost of inputs in production b. Future price expectations c. Income d. The prices of related goods
In the graph shown above, if the government set a price ceiling of $26.
A. there would be a permanent shortage, at least until the price ceiling was lifted.
B. there would be a temporary shortage, then the price would fall to equilibrium price.
C. price would rise to the equilibrium price.
D. price would immediately fall to the equilibrium price.
The real cost of buying a market basket of 25 important commodities in 2011 compared to the cost in the 1845-1850 base period is:
A. Higher by about 100 percent B. About the same or equal C. Lower by about 50 percent D. Higher by about 50 percent