According to the theory of _____, people look at past experiences and gradually adapt their beliefs and behavior as circumstances change
a. adaptive expectations
b. rational expectations
c. sticky wages
d. absolute advantage
a
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The FOMC "Statement on Long-Run Goals and Monetary Policy Strategy"made it clear that the Federal Reserve would be pursuing ________, consistent with its dual mandate
A) a flexible form of inflation targeting B) a strict form of inflation targeting C) a zero inflation targeting D) an implicit inflation targeting
As the interest rate increases, the velocity of money will increase as well
a. True b. False Indicate whether the statement is true or false
If the demand for hair gel increases, the effect on the hair gel manufacturing job market will be to
A. Have no impact on equilibrium wages. B. Decrease the demand for labor and reduce equilibrium wages. C. Increase the demand for labor and increase equilibrium wages. D. Reduce the supply of labor and increase equilibrium wages.
Exhibit 6-7 Marginal utility for sandwiches and sodas Quantity Sandwiches Sodas 1 10 5 2 8 4 3 6 3 4 3 1 5 ?1 0 Refer to Exhibit 6-7. If the price of a sandwich is $1 and the price of a soda is $1, Marian should spend her first dollar on a ____ and her second dollar on a ____.
A. sandwich; soda B. sandwich; sandwich C. soda; sandwich D. soda; soda