The belief that the government can do absolutely nothing in either the short run or the long run to reduce the unemployment rate, because people will anticipate the government's actions, is held by the
rational expectations school
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Continuous increase in investment in which of the following is most likely to cause sustained growth?
A) Capital B) Technology C) Land D) Labor
If households' disposable income decreases, then
A) households' saving will decrease. B) households' saving will increase. C) investment will increase. D) Both B and C are correct.
Which of the following is considered a necessary condition for successful price discrimination?
A) A firm's customers must all have the same price elasticity of demand. B) Firms are able to prevent resale among different groups of customers. C) Firms must be able to determine each customer's maximum willingness to pay for the product in question. D) Firms must operate in a perfectly competitive market.
The classical economists felt that there would be no general overproduction of goods because of
A) wage-price flexibility. B) the law of diminishing utility. C) the law of comparative advantage. D) contestable markets.