In the rational expectations model, only unexpected or unpredictable changes cause unemployment to deviate from its natural rate
a. True
b. False
Indicate whether the statement is true or false
True
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Sue Hawkins earns $100,000. How much Social Security tax does she pay?
What will be an ideal response?
Changes in government spending and tax revenues for the purpose of achieving a full-employment and noninflationary level of domestic output is called:
a. Industrial policy b. Trade policy c. Fiscal policy d. Monetary policy
Suppose that the equilibrium price of pickles falls while the equilibrium quantity rises. The most likely explanation for these changes is:
A. a decrease in the supply of pickles. B. a decrease in demand for pickles. C. an increase in demand for pickles. D. an increase in the supply of pickles.
Junie is shopping for dinner. She picks up a package of hot dogs on sale, instead of the burgers she was intending to buy. She then heads over to buy a package of hot dog buns. Junie's change in the demand for hot dog is due to a change in:
A. Junie's preferences. B. Junie's income. C. the price of related goods. D. Junie's expectation of future prices.