According to rational expectations, if policy makers consistently stimulate aggregate demand when real output falls below the economy's potential output, then people will not be able to anticipate the effects of this policy on the price level, unemployment, and the real output level
Indicate whether the statement is true or false
false
Economics
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Which of the following is NOT a common characteristic of a developing country?
A) extensive direct government control of the economy B) history of low inflation C) many weak credit institutions D) "pegged" exchange rates E) Agricultural commodities make up a large share of its exports.
Economics
Capital is appropriately classified as a
A. flow. B. process. C. stock. D. growth rate.
Economics
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the long run would be:
A. P2 and Y2. B. P1 and Y2. C. P4 and Y2. D. P1 and Y1.
Economics
Examine the two figures below. Which illustrates a society that produces more capital goods than consumer goods?
What will be an ideal response?
Economics