An unannounced increase in the money supply will increase both prices and real GDP under
A) neither rational nor adaptive expectations.
B) rational but not adaptive expectations.
C) adaptive but not rational expectations.
D) both adaptive and rational expectations.
D
You might also like to view...
An annual income statement from Quest Realty, Inc. is shown below:
During this year of operation, Quest Realty owned and occupied an office building in downtown Indianapolis. For this year, the building could have been leased to other businesses for $2,000,000 in lease income. Quest Realty also owned undeveloped land valued at $15,000,000. Owners of Quest Realty can earn a 14% rate of return annually on funds invested elsewhere.Economic profit is
A. $41,000,000 B. $19,000,000 C. $21,800,000 D. $38,200,000
Acid rain is an example of a negative externality.
Answer the following statement true (T) or false (F)
In the short run, whenever excess demand exists, it is necessary to
A. put the good on sale. B. ration the good. C. increase the supply of the good. D. impose a price ceiling on the good.
Which of the following terms best characterizes the demand for health care?
A. Price elastic B. Price inelastic C. Income inelastic D. Negative cross elasticity