Which school of economics held that individuals and business firms learn, through experience, to instantaneously anticipate the consequences of changes in monetary and fiscal policy?
A. The Keynesians
B. The monetarists
C. The supply-siders
D. The rational expectationists
D. The rational expectationists
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Gross domestic product is the total ________ produced within a country in a given time period
A) market value of all final and intermediate goods and services B) market value of all goods and services C) amount of final and intermediate goods and services D) market value of all final goods and services
An Added Perspective in the text shows that the average size of Japanese rice farms is growing and productivity is improving. This will likely cause __________ and generate requests for ____________
a. prices to increase; price ceilings b. prices to increase; price floors c. supplies to increase; price ceilings d. prices to decrease; price ceilings e. prices to decrease; price floors
In an economy, the government wants to decrease aggregate demand by $48 billion at each price level to decrease real GDP and control demand-pull inflation. If the MPC is 0.75, then it could
A. increase taxes by $24 billion. B. decrease government purchases by $16 billion. C. decrease government purchases by $10 billion. D. increase taxes by $16 billion.
The formal definition of price elasticity of demand is
A) change in quantity demanded divided by change in price. B) quantity demanded divided by price. C) percentage change in quantity demanded divided by percentage change in price. D) quantity demanded multiplied by price and divided by 100.