(I) Rational expectations adherents believe that decision makers base their future expectations on actual outcomes observed during recent periods. (II) The adaptive expectations hypothesis states that decision makers weigh all available evidence when forming expectations about future economic events
a. I is true; II is false.
b. I is false; II is true.
c. Both I and II are true.
d. Both I and II are false.
D
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If the market was a monopoly, the quantity would be ________ and the price would be ________; if the market tis perfectly competitive, the quantity would be ________ and the price would be ________
A) Q1; P1; Q2; P2 B) Q2; P1; Q1; P2 C) Q1; P1; Q2; P1 D) Q1; P2; Q2; P1 E) Q1; P2; Q1; P1
The discount rate is the interest rate charged by:
A. The Federal Reserve when it lends money to private banks. B. A private bank when it lends money to another private bank. C. A private bank when it lends money to commercial customers. D. A regional Fed bank when it lends money to another regional Fed bank.
If the Fed reduces inflation 1 percentage point and this makes output fall 5 percentage points and unemployment rises 2 percentage points for one year, the sacrifice ratio is
a. 1/5. b. 2. c. 5/2. d. 5.
At $5.15 per hour, the 2007 inflation adjusted minimum wage was
A. statutorily constant. B. nearing a 50-year low. C. slightly above the historical average. D. at an all-time high.