According to the rational expectations theory,
a. the expected results of government anti cyclical measures are intensified by the actions of businesses and individuals.
b. the easy expansion of the money supply by banks eventually leads to excess productive capacity.
c. the expected results of government anti cyclical measures are offset by the actions of businesses and individuals.
d. the limited expansion of the money supply by banks eventually leads to excess productive capacity.
c. the expected results of government anti cyclical measures are offset by the actions of businesses and individuals.
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Refer to Figure 21-25. Suppose the price of good X is $10, the price of good Y is $5, and the consumer’s income is $210. Then the consumer’s optimal choice is represented by a point on which curve?
a. I4
b. I2
c. I3
d. I1
Which of the following is most likely to lead to an economic contraction?
a. A decrease in the average price level b. An increase in aggregate supply c. A decrease in aggregate demand d. A decrease in taxes e. An increase in transaction demand for money
A firm's demand for labor is derived from its decision to supply a good in another market
a. True b. False Indicate whether the statement is true or false
An example of offshoring is when a foreign country sets up operations in the United States and employs American employees
Indicate whether the statement is true or false