According to the rational expectations view, _____
a. the economy will never deviate from the natural rate of unemployment for any anticipated policy
b. the long-run inflation rate is equal to zero
c. expected inflation is always less than actual inflation
d. people use only past information to form expectations about future inflation rates
e. announced money-growth policies are quite effective in reducing unemployment below its natural rate
a
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Use the following graph for the market for beef to answer the question below.
Refer to the graph, which shows that the demand for beef shifted from D1 and D2. The change in equilibrium from E1 to E2 is most likely to result from a(n)
A. increase in the cost of cattle feed. B. decrease in consumer incomes. C. increase in the price of pork. D. decrease in the tax on beef products.
Many predict there will be permanent, growing shortages of oil by the year 2025. The prognosticators are assuming
A) oil prices will fall. B) oil prices will not adjust appropriately to coordinate the market. C) oil prices will rise. D) greed will ruin the supply and demand process in the world oil market.
Which group came out of World War I (1914–18) better off?
(a) Industrial and agricultural workers (b) Creditors (c) Individuals depending on investment (d) People living on fixed incomes
Advocates of stabilization policy argue that when there is a recession, the government should increase the money supply and increase government expenditures
a. True b. False Indicate whether the statement is true or false