According to rational expectations theory, a long period of unemployment is necessary to reduce inflation
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
How much do you believe that current tax policy is influenced by politics, as opposed to sound and efficient tax policy?
What will be an ideal response?
Which of the following factors of production is not variable in the long run?
a. the size of the firm's plant. b. property taxes on the assets of the firm. c. highly trained labor. d. All factors of production are variable in the long run.
The higher the world price above the domestic no-trade equilibrium, the lesser the quantity of a good exported by a country
a. True b. False Indicate whether the statement is true or false
Refer to the information provided in Figure 9.2 below to answer the question(s) that follow.
Figure 9.2Refer to Figure 9.2. Suppose demand for wheat is initially D2. If consumer incomes increase, then demand for wheat will shift to ________. This will ________ the equilibrium price of wheat, and individual profit-maximizing firms will produce ________ bushels of wheat.
A. D3; decrease; 7 B. D1; decrease; 0 C. D3; increase; 15 D. D1; increase; 10