According to the Lucas critique, changes in economic policy are likely to have important effects on
A) the available amounts of natural resources.
B) the behavior of consumers and firms.
C) the preferences of consumers.
D) none of the above
B
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The participation rate is the number of people:
A. employed and unemployed divided by the population aged 16 years and older. B. employed divided by the labor force. C. employed and unemployed divided by the labor force. D. employed divided by the population aged 16 years and older.
Refer to Figure 4-5. Suppose that instead of a price ceiling, the government imposed a price floor of R1. What is the area representing the portion of consumer surplus transferred to producers as a result of the price floor?
A) A + B B) B C) A D) B + C
A manager invests $400,00 . in a technology to reduce overall costs of production. The company managed to reduce their cost per unit from $2 to $1.85 . This affects
a. Economic profits b. Accounting profits c. Both a and b d. None of the above
Which of the following is an exogenous variable in the Three-Sector-Model?
a. Oil prices b. GDP price index c. Real risk-free interest rate d. Quantity of currency per time period e. Real GDP