A conclusion of the theory of rational expectations is that, in the short run, the impact of discretionary fiscal policies designed to shift the AD curve will:
a. result in no net change in AD once people's expectations adjustments have been accounted for
b. shift AD in the opposite direction intended once people's expectations adjustments have been accounted for.
c. be anticipated and compensated for, causing no significant effect on real or nominal GDP or employment.
d. have to be a surprise to change real output in the intended direction.
d
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One of the basic differences between social and economic regulations is that
A) economic regulations only apply to financial institutions while social regulations apply to a greater variety of institutions. B) social regulations only apply to non-profit organizations while economic regulations apply only to for-profit organizations. C) economic regulations cover only particular industries while social regulations apply to all firms in the economy. D) economic regulations focus on the banking industry while social regulations focus on monopolies.
The consumption function shows the relationship between consumption and
a. interest rates b. saving c. price level changes d. GDP e. income
Suppose Wrentham Gold Miners & Co chooses the quantity of gold each of its mines will produce over the next 12 months. Assuming the market price of gold remains constant over the period, identify the correct statement about the firm's total revenue. a. Total revenue will vary with the price charged by the firm
b. Total revenue will be maximized when market price is less than average variable cost. c. The total revenue curve of the firm will be U-shaped. d. Total revenue will vary with the quantity produced by the firm.
Inflation must be high in Moscow because it is very expensive to live there.
Answer the following statement true (T) or false (F)