The theory of rational expectations concludes that
A. the public's expectations can influence the outcome of monetary policy, but not of fiscal policy.
B. the public's expectations can influence the outcome of fiscal policy, but not of monetary policy.
C. the public's expectations as to the effects of economic policies will tend to reinforce the effectiveness of those policies.
D. by reacting in its self-interest to the expected effects of stabilization policy, the public will tend to negate the impact of those policies.
D. by reacting in its self-interest to the expected effects of stabilization policy, the public will tend to negate the impact of those policies.
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To compute a monthly consumer price index, we need
A) data about consumption habits in every month. B) data about item prices every month. C) fixed exchange rates. D) the GDP or GNP deflator.
The term "price setter," which describes monopolists, means that a monopolist does not simply take the market price as given but sets its own price within the confines of consumers' willingness to pay
a. True b. False Indicate whether the statement is true or false
Assume that Sweden will specialize in either boats or cars. What is their opportunity cost of producing three cars?
Use the above table and assume a fixed cost of $1000. At an output of 0, total cost is
A. 0.
B. $400.
C. $1,000.
D. $1,400.