According to adaptive expectations theory, which of the following would be the result of expansionary monetary and fiscal policies?
a. There is a short-run reduction in unemployment.
b. There is a long-run trade off between inflation and unemployment.
c. The inflation rate falls in the long run.
d. The economy always operates at the natural rate of unemployment
a
You might also like to view...
Refer to the table above. What is the average monthly wage?
A) $612 B) $650 C) $558 D) $450
Refer to Table 2-7. The Shellfish Shack produces only shrimp and oysters. The table above shows the maximum possible output combinations of the two types of shellfish using all resources and currently available technology
a. Suppose The Shellfish Shack is currently producing at point E. What is the opportunity cost of producing an additional 11,000 pounds of oysters? b. Suppose The Shellfish Shack is currently producing at point E. What happens to the opportunity cost of producing more and more shrimp? Does it increase, decrease, or remain constant? Explain your answer. c. Suppose The Shellfish Shack is currently producing at point B. What happens to the opportunity cost of producing more and more oysters? Does it increase, decrease, or remain constant? Explain your answer. d. Suppose The Shellfish Shack is plagued by a disease which destroys oyster beds but not shrimp habitats. What would happen to its PPF?
The marginal revenue product curve is:
a. c and d are correct. b. c and e are correct. c. given by the marginal product curve multiplied by the price of the good. d. the marginal contribution of an additional worker to firm's revenues. e. the change in total cost that results from employing an additional worker.
Countries that enjoy long distance flows of goods, capital, and services as well as information and perceptions that accompany market exchanges would be categorized under _____ globalization
a. ethical b. cultural c. social d. economic e. political