The "rational expectations" school of economists, including Robert Lucas and Thomas Sargent, argue that changes in monetary policy cannot affect unemployment rates in the short run or long run
Indicate whether the statement is true or false
FALSE
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Which of the following four firms would most likely be part of a monopolistically competitive market?
A) Lee, J Brand, Joe's Jeans, Paper Denim & Cloth, Levi's, and Wrangler are all producers of jeans. B) Mark sells the tomatoes he grew in his backyard at the local farmers market. C) The WaveHouse is the only place in San Diego where you can ride an indoor 10 foot wave. D) Amara Massage is the only firm which specializes in pre- and post-natal massage.
Compared to the level of real GDP per person in 1870, by 2010, real GDP in the U.S was ________ times larger, while real GDP per person in Japan was ________.
A. 12; smaller B. 30; 12 times larger C. 12; 12 times larger D. 12; 30 times larger
Suppose the nation of Alphonia was charged with dumping electric lawnmowers in the nation of Omegalon. The charge of dumping electric lawnmowers in the Omegalon market means that Alphonia was accused of:
A. selling faulty electric lawnmowers in Omegalon. B. selling electric lawnmowers below cost or below domestic prices. C. selling counterfeit-branded electric lawnmowers in Omegalon. D. discarding electric lawnmowers which would not sell in their home country.
Assume the US has a comparative advantage versus Brazil in producing large jets (LJs) while Brazil has a comparative advantage in producing small jets (SJs). The opportunity cost of producing another LJ is 2 SJ in the US and 4 SJ in Brazil. Without trade, the maximum number of LJs the US can produce is 60 and the maximum number of SJs the US can produce is 120. If the US and Brazil agree to trade at the rate of 1 LJ for 3 SJs, what is the maximum number of small jets that would be available in the US if the US produces all LJs and trades them all away to Brazil at the agreed upon rate of trade?
a) 20 b) 60 c) 120 d) 180 e) 360