In the late 1970s, proponents of rational expectations argued that
a. the Fed should not attempt to aggressively fight inflation.
b. the sacrifice ratio was smaller than previously thought.
c. the short run was relatively long.
d. None of the above is correct.
b
You might also like to view...
In the above figure, if the natural monopoly is regulated with an average cost pricing rule and the firm does not inflate its costs, then the firm will produce
A) 8 million units and set a price of $21 per unit. B) 12 million units and set a price of $18 per unit. C) 16 million units and set a price of $16 per unit. D) nothing unless the government provides subsidies to cover its losses.
An increase in the cost of acquiring human capital will shift the labor supply curve to the left; eventually, this will tend to decrease the equilibrium wage rate
a. True b. False
Other things the same, which of the following would a rise in the real interest rate raise: desired investment spending, desired national saving, desired net capital outflow?
When sketched as a function of disposable income, the investment demand curve is:
A. always horizontal. B. always vertical. C. upward sloping. D. parabolic.