In the Keynesian theory of labor supply, price expectations are based
a. only on the future behavior of the price level.
b. on the past, present, and future behavior of the price level.
c. on the present behavior of the price level.
d. on the past behavior of the price level.
D
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What is rent seeking? How does rent seeking affect the deadweight loss from monopoly?
What will be an ideal response?
A firm charges each customer the highest price that customer will pay for the marginal unit under
a. perfect competition b. oligopoly c. monopolistic competition d. single-price monopoly e. perfect price discrimination
Government expenditures are larger than government outlays
a. True b. False
Which of the following statements is true about the misperceptions theory?
A. Both anticipated and unanticipated changes in the nominal money supply have real effects on the economy. B. Anticipated changes in the nominal money supply have real effects, but unanticipated changes are neutral. C. Unanticipated changes in the nominal money supply have real effects, but anticipated changes are neutral. D. Neither anticipated nor unanticipated changes in the nominal money supply has real effects on the economy.