Refer to the above figure. The rational expectations hypothesis implies that an anticipated decrease in aggregate demand from AD2 to AD1 will
A) move the economy from b to c.
B) move the economy from b to a.
C) move the economy from c to a.
D) shift the aggregate supply (AS) curve to the left.
B
Economics
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If the marginal propensity to save is 0.25, then a $10,000 decrease in disposable income will
a. increase consumption by $7,500. b. increase consumption by $2,500. c. decrease consumption by $7,500. d. decrease consumption by $2,500.
Economics
Explain how two Bertrand price competitors can price above marginal cost in an infinitely repeated game setting.
What will be an ideal response?
Economics
What is an income statement?
What will be an ideal response?
Economics
In the United States, the annual growth rate of real GDP per hour worked between 2006 and 2014 averaged
A) -0.3%. B) 1.2%. C) 6.9%. D) 10.2%.
Economics