Rational expectation theory implies that accurately anticipated change in aggregate demand:
a. will increase real GDP in the short run
b. will affect real GDP and inflation only in the long run.
c. may affect nominal GDP but not real GDP in the short run.
d. will do none of the above.
c
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Between 1820 and 1860, cotton output per slave:
a. remained fairly stable. b. increased by about 10 percent. c. increased by fourfold or more. d. decreased slightly.
If the price level increases, we would expect consumers to
a. raise their consumption functions. b. move downward along their consumption functions. c. lower their consumption functions. d. move upward along their consumption functions.
Figure 3-18
Refer to . Which area represents consumer surplus at a price of P1?
a.
ABD
b.
ACF
c.
BCDE
d.
DEF
The size of a deadweight loss in a market is reduced by
A) government legislating a ceiling price. B) government legislating a price floor. C) market price being close to marginal cost. D) creative destruction.