A mainstream criticism of the rational expectations theory is that:
A. The theorists confuse correlation with causation in interpreting the empirical evidence
B. People do not make consistent forecasting errors which can be exploited by policy makers
C. Many markets are not purely competitive and do not adjust rapidly to changing market conditions
D. The data indicate that economic policy does not affect real GDP and employment
C. Many markets are not purely competitive and do not adjust rapidly to changing market conditions
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Over the last 30 years, the income gap between the rich and the poor has declined.
Answer the following statement true (T) or false (F)
The TANF program is generally thought of as being a success because _____
a. welfare rolls have declined significantly since its inception b. welfare spending has declined significantly since its inception c. is similar to the AFDC program while being strictly means-tested d. a and b
According to studies by Goldin and Skoloff (1982) and Craig and Field-Hendry (1993), the female-to-male wage ratio in the early 1800s
a. was higher in the North than in the South. b. is comparable to the ratio in 1860. c. encouraged the adoption and success of the Waltham system. d. was greater than one.
The greatest advantage of the railroad over earlier forms of transportation was its speed and its ability to stay open throughout most of the winter. Robert Fogel attempted to measure the advantage of faster all-weather transport by examining:
a. profits in transportation industries as a group. b. profits in railroads compared with canals. c. employment of labor and capital in the transportation sector before and after the railroad. d. inventories of agricultural products held in eastern markets.