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

Economics

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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

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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

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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.

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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

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