The Lucas supply function, ________ the assumption that expectations are rational, implies that ________ policy changes will have no effect on real output.
A. in combination with; unanticipated
B. in contrast to; unanticipated
C. in combination with; announced
D. in contrast to; announced
Answer: C
You might also like to view...
Refer to Figure 18.1. After trade begins, ________ will specialize in the production of bicycles and ________ will specialize in the production of hang gliders
A) the United States; Canada B) the United States.; the United States C) Canada; Canada D) Canada; the United States
When demand for a product increases,
A) suppliers change their plans. B) demanders change their plans. C) the price changes. D) all of the above occur. E) none of the above occur.
The features of the U-Form of firm organization are
a. workers have trouble developing a high degree of functional expertise b. it is difficult for employees to share information across positions within a division c. employee evaluation is simplified by managers having similar skill sets than workers d. coordination across divisions is simple and does not take much management time
Which of the following is not true about a production possibilities curve? The curve:
a. indicates the combinations of goods and services that can be produced with given technology. b. indicates the efficient production points. c. indicates the non-efficient production points. d. indicates the feasible (attainable) and non-feasible production points. e. indicates which production point will be chosen.