The staggering of wage and price decisions suggests that
A) people do not possess rational expectations.
B) people do possess rational expectations.
C) the economy will adjust slowly to shocks even if people possess rational expectations.
D) the Lucas critique is entirely correct.
E) real business cycle theory is correct.
C
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Which of the following are two major sources of international law?
a. common law and natural law b. ethical principles and mutual expectations c. international conventions and international custom d. state legislatures and the international legislature
An economy has two workers, Jen and Rich. Every day they work, Jen can produce 2 TVs or 10 radios, and Rich can produce 4 TVs or 12 radios. What is the opportunity cost for Jen to produce one radio?
A. 1/5 TV B. 5 TVs C. 1/10 TV D. 10 TVs
Under a fixed exchange-rate system, a large fall in the market price (the exchange rate value) of a currency is called a(n) ________ of that currency.
A. revaluation B. depreciation C. devaluation D. appreciation
The price of a stock should equal the face value of its expected future dividends.
Answer the following statement true (T) or false (F)