Monetarists and Keynesians agree that expectations are
a. backwards-looking.
b. rational.
c. unstable.
d. forwards-looking.
A
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Refer to Table 3-5. The table contains information about the corn market. Use the table to answer the following questions
a. What are the equilibrium price and quantity of corn? b. Suppose the prevailing price is $9 per bushel. Is there a shortage or a surplus in the market? c. What is the quantity of the shortage or surplus? d. How many bushels will be sold if the market price is $9 per bushel? e. If the market price is $9 per bushel, what must happen to restore equilibrium in the market? f. At what price will suppliers be able to sell 24,000 bushels of corn? g. Suppose the market price is $21 per bushel. Is there a shortage or a surplus in the market? h. What is the quantity of the shortage or surplus? i. How many bushels will be sold if the market price is $21 per bushel? j. If the market price is $21 per bushel, what must happen to restore equilibrium in the market?
Given freedom of movement for both goods and resources, if Florida producers specialize in oranges and Georgia producers specialize in peaches, it would be reasonable to conclude that
a. the opportunity cost of growing oranges is higher in Florida than in Georgia. b. Georgia has a comparative advantage in producing oranges. c. Florida has a comparative advantage in producing oranges. d. total output will be expanded when Georgia allocates more resources to producing oranges and Florida allocates more resources to producing peaches.
A 2009 article in The Economist noted that some studies have provided evidence indicating that multipliers are
a. smaller in closed economies than in open economies. b. larger in closed economies than in open economies. c. smaller in capitalist economies than in socialist economies. d. larger in capitalist economies than in socialist economies.
A tax loophole is
A. an illegal method by which individuals or corporations avoid paying the taxes they legally owe. B. a provision in the tax code that allows individuals or corporations to reduce their tax burdens legally by meeting certain conditions. C. a tax surcharge on incomes within certain ranges. D. a provision in the tax code that allows individuals or corporations to shift the economic incidence of a particular tax on to someone else.