Traditional treatments of macroeconomic expectations are not consistent with the assumptions of
A. microeconomics.
B. Keynesian policy.
C. fiscal policy.
D. all of the above
Answer: A
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Which of the following statements about explicit costs is true?
A. They usually exceed implicit costs. B. They are the only costs that matter to business owners. C. They appear on the firm's balance sheet. D. They are difficult to measure.
Harry works at the video rental store for 20 hours per week. He's asked his boss to allow him to work 40 hours per week, but has been told that business is too slow. Harry is considered
A) a discouraged worker. B) an involuntary part-time worker. C) a marginally attached worker. D) not in the labor force. E) a job seeker.
Alejandro expects the price level to rise from 105 this year to 108 next year. If the price level rises to 110 next year instead of 108, which of the following will occur?
A) Alejandro's real wage rises. B) Alejandro's real wage remains unchanged. C) Alejandro's real wage may rise or fall, depending on the unemployment rate. D) Alejandro's real wage falls.
Everything else held constant, a change in workers' expectations about inflation will cause ________ to change
A) aggregate demand B) short-run aggregate supply C) the production function D) long-run aggregate supply