Expectations about the future will always be accurate if formed under ________
A) rational expectations
B) adaptive expectations
C) natural selection
D) none of the above
D
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Assume the income elasticity of a good has been calculated to be +0.83. Based on this information, we can infer that the good is:
A) a normal good and a luxury. B) an inferior good and a necessity. C) a normal good and a necessity. D) an inferior good and a luxury.
In the Keynesian model, when the economy is not in long-run equilibrium, then the short-run equilibrium point is not on which curve?
A) SRAS B) FE C) IS D) LM
The real rate of interest equals 8%, and the expected rate of inflation equals 2%. The nominal rate of interest is
A) 2%. B) 6%. C) 8%. D) 10%.
The conditions for successful price discrimination include
a. some ability for the firm to set the price. b. strong barriers segmenting markets. c. an inability for any customer to resell the product. d. All of the above.