A key implication of the policy irrelevance proposition is that
A) only unanticipated policy actions can influence real Gross Domestic Product (GDP).
B) only fully anticipated policy actions can influence real Gross Domestic Product (GDP).
C) the rational expectations hypothesis is incorrect.
D) none of the above.
A
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When the minimum wage is raised, the ________ union labor ________
A) demand for; increases B) demand for; decreases C) supply of; increases D) supply of; decreases E) demand for; does not change
The goal of price discrimination is to
a. Convert consumer surplus to producer surplus b. Maximize profits c. Both a and b d. Make pricing decision difficult
President Nixon "closed the gold window"
a. as a political expediency b. to force the allies to devalue their currencies c. to try to save the Bretton Woods exchange rate system d. to halt dramatic inflows of gold into the United States e. to cure the U.S. domestic deflationary spiral
By seeking economic profit, managers are seeking to create value
Indicate whether the statement is true or false