Proponents of rational expectations argued that the sacrifice ratio
a. could be high because it was rational for people not to immediately change their expectations.
b. could be high because people might adjust their expectations quickly if they found anti-inflation policy credible.
c. could be low because it was rational for people not to immediately change their expectations.
d. could be low because people might adjust their expectations quickly if they found anti-inflation policy credible.
d
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Refer to Table 9-11. Suppose an economy has only three goods and the typical family purchases the amounts given in the table above. If 2011 is the base year, then what is the CPI for 2016?
A) 40.08 B) 100 C) 180 D) 208
If the general education level within a country rises significantly over time, it is likely that:
a. the country will move to a different point along its current production possibilities curve. b. the country's production possibilities curve will not change in any way. c. the country's production possibilities curve will shift in. d. the country's production possibilities curve will shift out. e. the country's production possibilities curve will become convex to the origin.
Under what circumstances does purchasing-power parity explain how exchange rates are determined, and why is it not completely accurate?
In general, information asymmetries are ________ within financial markets.
A. uncommon B. common C. not accounted for D. not easily accounted for