Herbert Simon suggested that people are not rational maximizers but satisficers, meaning that they choose a course of action that is
a. personally satisfying, with a greater emphasis on personal consumption than on fairness.
b. socially satisfying, with a greater emphasis on fairness than on personal consumption.
c. good enough.
d. risk averse.
c
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According to New Keynesians, an increase in which of the following will tend to cause the inflation rate to increase?
A) firms' average inflation adjusted per-unit costs of production B) anticipated future inflation C) an unexpected increase in aggregate demand D) all of the above
If everyone expects prices to fall but they do not, then
a. nothing happens. b. the IS curve shifts to the left and the AD curve shifts to the right. c. both IS and AD shift to the right. d. both IS and AD shift to the left. e. the IS curve shifts to the right, the AD curve shifts to the left.
Dumping refers to selling a product abroad at higher prices than the product is sold domestically
Indicate whether the statement is true or false
A decrease in the price level
A) shifts the SRAS curve to the right. B) shifts the SRAS curve to the left. C) causes an upward movement along the existing SRAS curve. D) causes a downward movement along the existing SRAS curve. E) none of the above