The rational-expectations hypothesis implies that there is no need for government stabilization policies.
Answer the following statement true (T) or false (F)
True
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Suppose that the Australian economy initially uses 50 billion hours of labor to produce $5 trillion of real GDP. If 50 billion more hours are employed and Australia's real GDP increases by $4 trillion more,
A) Australia's production function exhibits diminishing returns. B) Australia's production function exhibits increasing returns. C) Australia has an Okun Wedge of $1 trillion. D) Australia has positive Lucas Wedge. E) Australia's production possibility frontier has a positive slope.
The marginal utility from the consumption of a good is equal to the
A) total utility divided by the quantity consumed. B) total utility divided by the price. C) change in total utility divided by the change in the quantity consumed. D) change in total utility divided by the change in price.
The larger the hub presence, the larger the hub ____________.
Fill in the blank(s) with the appropriate word(s).
A ______ market is one in which a number of buyers and sellers are offering similar products, and no single buyer or seller can influence the market price.
a. bullish b. command c. competitive d. regulated