Both the permanent-income and life-cycle hypotheses are based on the crucial assumption of ________ expectations
A) rational
B) adaptive
C) backward-looking
D) forward-looking
D
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In the Keynesian model, to understand the determination of income and employment it is necessary to understand
A) how aggregate supply is determined. B) how aggregate demand is determined. C) how long-run aggregate supply is determined. D) how interest rates are determined.
If money wages increase, the most likely result is a(n)
a. increase in aggregate supply. b. decrease in aggregate supply. c. steeper aggregate supply curve. d. flatter aggregate supply curve.
Total spending in a nation is its gross national product
a. True b. False Indicate whether the statement is true or false
Actions that ignore the possible long-run benefits of cooperation and focus solely on short-run gains are
A) a zero-sum game. B) a negative-sum game. C) tit-for-tat strategic behavior. D) opportunistic behavior.