The rational-expectations hypothesis suggests that the forecasts that people make concerning future inflation rates
A. consistently underestimate the actual rate of inflation in the future.
B. consistently overestimate the actual rate of inflation in the future.
C. are always correct.
D. are correct on average, but are subject to errors that are distributed randomly.
Answer: D
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The Lorenz curve demonstrates:
A. inequality visually; the more linear the curve, the less inequality exists. B. inequality visually; the more linear the curve, the more inequality exists. C. average income levels per capita; the more linear the curve, the less inequality exists. D. average income levels per quintile; the more linear the curve, the more inequality exists.
Between 1775 and 1780, $242 million of Continental Notes were printed. As the quantity of the Continentals multiplied,
a. the demand for these notes multiplied as well b. their value depreciated c. their value appreciated d. banks on the European continent intervened to stabilize the value of the Continental notes e. silver and gold became less valuable
What factors can cause the labor demand curve to shift?
In first-degree price discrimination, the monopolist
A. can segment the market to the fullest extent. B. knows the equilibrium price. C. charges only two different prices. D. gets less of the consumer surplus than would be taken if 2nd degree price discrimination was practiced.