Which of the following is a normative macroeconomics statement?
A) The central bank should increase the nation's money supply.
B) The increase in the nation's money supply helped push the nation's unemployment rate down in the short run.
C) Ford Motor Company's new advertising campaign ended up hurting General Motors' sales.
D) The local government ought to spend more on recreational facilities.
A
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Rational expectations theory is based on the assumption that when individuals in the economy are forming expectations, they
A) use all available information. B) use past evidence only. C) consistently make the same errors. D) pay no attention to past information.
The slope of the production possibilities frontier is defined to be the marginal rate of
A) transformation. B) technical substitution. C) substitution. D) profit.
The major reason the market demand curve for labor slopes downward is because:
a. at lower wage rates, workers are less willing to supply labor to the market. b. at lower wage rates, workers are more willing to supply labor to the market. c. of the law of diminishing marginal product d. of the law of diminishing marginal resource cost.
Explain the principal–agent problem in business
Please provide the best answer for the statement.