Adaptive expectations is a school of thought that argues people form expectations based on all available information, including the likely future actions of government policy makers
a. True
b. False
Indicate whether the statement is true or false
False
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If labor market institutions change so that it becomes easier to find a job, and unemployed people are unemployed for smaller durations of time, what would happen to the natural rate of unemployment?
A. It would increase. B. It would remain the same, since the number of workers has not changed. C. It would decrease. D. There is not enough information to determine what would happen.
If an increase in the price of some goods outweighs other prices that remain constant or decrease then there is:
A. Inflation. B. Deflation. C. Stagflation. D. Reflation.
The long-run aggregate supply curve shows the output level that an economy can produce when:
A. firms adjust quantity rather than price. B. both capital and labor are fully employed. C. capital is fully employed. D. labor is fully employed.
A change in demand would be illustrated by
a. a drop in price, which causes people to buy more. b. an increase in price, which causes people to buy less. c. a change in people’s preferences that causes them to buy either more or less than before. d. All of these.