________ rational expectations, ________
A) Most people have always formed; but macroeconomists have only recently come to recognize this fact
B) Macroeconomists have invented; and are trying to teach them to the general public
C) Policy makers have devised; in search of more effective policies
D) The latest information is an important input in; so most people must make do with adaptive expectations
A
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Under British rule, colonists were considered British subjects and had most of the same rights of British citizens
Indicate whether the statement is true or false
During inflation, the optimal discretionary fiscal policy would be _____
a. to decrease taxes b. to increase government spending c. to decrease the reserve ratio d. to increase taxes e. to decrease the market interest rate
Before a market allocation of goods on the production possibilities curve can be judged efficient, one must evaluate "what" goods the market produced
a. True b. False Indicate whether the statement is true or false
If the price elasticity of demand for a good is 0.5, then a 5 percent increase in price results in a
a. 0.1 percent decrease in the quantity demanded. b. 1 percent decrease in the quantity demanded. c. 2.5 percent decrease in the quantity demanded. d. 10 percent decrease in the quantity demanded.