The theory of ___________ concludes that by reacting to the expected effects of a stabilization policy, the public will tend to negate the impact of that policy.
Fill in the blank(s) with the appropriate word(s).
rational expectations
You might also like to view...
Figure 6-4
In Figure 6-4, total expenditure ____ as price falls from P = 12 to P = 10.
A. falls B. remains constant C. rises D. rises by more than $12
Refer to Table 7.1. As labor inputs increase from 5 to 6, output
A) increases by 98 units. B) increases by 16 units. C) increases by 12 units. D) increases at a negative rate.
Using the table above, if the current market value of the dollar is 90 francs
A) investor A expects dollar appreciation, but B and C expect depreciation. B) investor C expects dollar depreciation, but A and B expect appreciation. C) all three investors expect the dollar to appreciate. D) all three investors expect the dollar to depreciate.
What occurs in the second stage of economic development?
A) Most of the labor force works in agriculture. B) The service sector comes to the forefront. C) The manufacturing sector declines in importance. D) Manufacturing gains in importance and employs a large portion of the labor force.