Rational expectation theory implies that accurately anticipated change in aggregate demand:
a. will increase RGDP in the short run
b. will affect RGDP and inflation only in the long run.
c. may affect RGDP but not nominal GDP in the short run.
d. will do none of the above.
d
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In the above figure, income is $8, the price of a soft drink is $1, and the initial price of a milkshake is $2. If the price of a milkshake decreases to $1, the income effect is the movement from point ________ to point ________
A) a; b B) b; d C) b; c D) a; c
The Federal Reserve is run at the national level by _____
a. Congress b. the president c. a board of governors d. the federal government
The sum of the unemployment rate and the employment rate always equals 100 percent
Indicate whether the statement is true or false
Refer to the graph shown. The relationship represented in the figure is called a:
A. labor demand curve. B. short-run Phillips curve. C. labor supply curve. D. long-run Phillips curve.