The "stagflation" of the 1970s ________ Keynesian macroeconomics until the Keynesians started to build the consequences of changing inflationary expectations and ________ shocks into their models
A) reinforced the dominance, supply
B) reinforced the dominance, demand
C) deepened the eclipse, supply
D) deepened the eclipse, demand
C
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Recall the Application. The experiment conducted by Blinder showed that the actual process of having committee meetings and discussions
A) improved the group's overall performance. B) tended to polarize the group into two distinct factions. C) magnified the individual group member's differences. D) related to the average performance of the individual group members.
One reason why adverse selection problems arise in the market for health insurance is because
A) sick people are more likely to want health insurance than are healthy people. B) fewer people are choosing careers in the medical field because of increases in the cost of education. C) as people live longer, a greater portion of their medical bills will have to be paid by younger generations. D) advances in medical technology are costly, and drive up the price of medical insurance.
If the cross-price elasticity of two goods is negative, then the two goods are
a. necessities. b. complements. c. normal goods. d. inferior goods.
Many economists argue that the labor market may take a long time for wages to adjust to new equilibrium level
Indicate whether the statement is true or false