The Lucas critique is an attack on the usefulness of
A) conventional econometric models as forecasting tools.
B) conventional econometric models as indicators of the potential impacts on the economy of particular policies.
C) rational expectations models of macroeconomic activity.
D) the relationship between the quantity theory of money and aggregate demand.
B
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Members of a cartel who refrain from selling at prices below the prices established by the cartel will usually
A) continue indefinitely to receive a high net revenue. B) discover other ways to attract additional customers. C) have no incentive to improve the quality of their products. D) not compete against one another. E) want to attract additional firms into the industry to increase the size of the cartel.
Which of the following Latin American countries had the strongest growth rate between 1960 and 2011?
A) Argentina B) Chile C) Peru D) Venezuela
If I am paid a wage below my opportunity cost, I am being paid an efficiency wage
Indicate whether the statement is true or false
When the price level falls, the total quantities of goods and services demanded:
A. decrease. B. stay the same. C. increase. D. increases and then decreases.