Which of the following would be evidence against rational expectations?
a. unpredictable changes in policy have real effects.
b. new information leads to changes in output.
c. the public never make mistakes with respect to price level predictions.
d. changes in stock prices change much more often than new information becomes available.
D
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Other things remaining constant, the only way to move along a given supply curve for a product is for:
a. Technological changes to occur b. The number of sellers to increase or decrease c. The price of resources used to produce the product to increase or decrease d. The product's price to increase or decrease
Opportunity cost is a theoretical concept with no practical application.
Answer the following statement true (T) or false (F)
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point E necessarily represents
A. only motorcycles being produced. B. overallocation of resources. C. an impossible production point. D. technological advancement.
If labor markets were perfectly efficient, the employment rate would rise to 100%.
Answer the following statement true (T) or false (F)