Under adaptive expectations theory, people expect the rate of inflation this year to be:
a. zero, regardless of the rate last year.
b. the same as last year.
c. the rate based on predictable and fiscal policies.
d. All of these.
b
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Which of the following can occur if price controls are imposed on a product?
A. Persistent shortages B. Illegal markets C. Illicit channels of distribution D. Industry investment slows or stops E. All of these responses are correct.
An economic model suggests that an additional year of education increases a student's future wages by 15 percent. Using this model, answer the following questions: a) Gary completes 8 years of education, and John completes 9 years of education
If Gary earns $20 per hour, how much is John expected to earn? b) John completes 9 years of education, and Kevin completes 12 years of education. Given John's earnings [as calculated in a)], how much is Kevin expected to earn? c) Is there any limitation to such a model? Explain your answer.
Factors that influence labor productivity include ________
A) the inflation rate, the real wage rate, and the exchange rate B) the labor demand curve C) physical capital, the real wage rate, and technology D) physical capital, human capital, and technology
In the figure above, which budget line has the lowest relative price of compact discs?
A) AD B) BD C) CD D) The relative price is equal for all three budget lines.