Which of the following is NOT an inference of the rational expectations hypothesis?
A) Government policy actions have no real effects in the short run unless the actions are unanticipated.
B) Government policy actions have no real effects in the long run.
C) Government policy actions that are anticipated have no real effects in the short run.
D) Government policy actions that are unanticipated have no monetary effects in the short run.
D
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Usually the demand for labor decreases (that is, the demand for labor curve shifts leftward) if the
A) wage rate increases. B) wage rate decreases. C) price of the firm's output rises. D) prices of other factors fall.
In a perfectly competitive situation, the profit-maximizing hiring situation for all inputs being used is where
A) the MRP of each input is equal to the price of each input. B) the MRP of each input is greater than the price of each input. C) the MRP of each input is less than the price of each input. D) There is no relationship between MRP and the prices of the inputs.
Taxes are injections into the circular flow of income and expenditure model
a. True b. False Indicate whether the statement is true or false
An optimal purchase is one that maximizes total utility
a. True b. False Indicate whether the statement is true or false