Economists of the rational expectations school believe that expansionary monetary policy is fully effective only if:
a. the policy is anticipated by workers and firms
b. it causes the aggregate supply curve to shift to the left.
c. the economy is operating at or above its potential output level.
d. policy makers follow through on their previously announced plans.
e. the policy is totally unexpected.
e
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The annual growth rate of an economy is 10 percent. The economy's GDP will double in about ________ years
A) 12 B) 10 C) 20 D) 7 E) 14
At the end of an expansion, wages of workers are usually rising faster than prices
Indicate whether the statement is true or false
If all Pareto improvements have been made
A) the result is increased government regulations. B) the outcome is Pareto efficient. C) consumer surplus is maximized. D) monopolists are unhappy.
Marginal revenue is: a. the additional cost incurred from producing one more unit of output. b. the addition to total profit from selling one more unit of output
c. the addition to total revenue from selling one more unit of output. d. the addition to total output from hiring one more unit of labor.