Starting from an initial long-run equilibrium, under the rational expectations hypothesis, an anticipated shift to a more expansionary policy will increase
a. prices but not real output in the short run.
b. real output but not prices in the short run.
c. real output in the long run but not in the short run.
d. real output in both the long run and the short run.
A
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When a game has more than one Nash equilibrium,
a. at least one of them will be Pareto optimal. b. they will all tend to be unstable. c. they must provide the same total payoff to the players. d. it is difficult to predict which of them will actually occur.
Accounting profits are found by total revenues minus
A) explicit costs. B) explicit and implicit costs. C) implicit costs. D) all opportunity costs.
The basic trade-off in valuing any asset is between:
A. amount of risk and rate of return. B. rate of return and length of loan. C. amount of risk and length of loan. D. rate of return and amount of loan.
The main advantage of money market deposit accounts over traditional checking accounts is the ease of check writing
a. True b. False Indicate whether the statement is true or false