The Lucas supply model, in combination with the assumption that expectations are rational, leads to the conclusion that
A. only unanticipated policy changes can have an impact on output.
B. contractionary policies, but not expansionary policies, can have an impact on real output.
C. expansionary policies, but not contractionary policies, can have an impact on real output.
D. neither anticipated nor unanticipated policy changes can have an impact on output.
Answer: A
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Use the following table to answer the next question.YearAltaZornAltaZorn?(Real GDP)(Real GDP)(Population)(Population)1$2,000$150,00020050022,100152,00020250532,200154,000210508Per capita GDP was about
A. $303 in year 3 in Zorn. B. $5 in year 2 in Alta. C. $105 in year 3 in Alta. D. $200 in year 1 in Zorn.
"No individual should have less than $20,000 income in the United States in 2017" is an example of
A) a normative statement. B) a positive statement. C) an illogical and refutable statement. D) a truism.
In the modern economic growth process, it is typical to find that:
A. Leader countries continue to grow faster than follower countries B. Follower countries can grow faster than leader countries C. Large countries cannot grow faster than leader countries D. The gap between the leader countries and the follower countries stays constant
Command-and-control legislation, as compared to incentive-based regulation:
a. encourages the use of comparative advantage in the short run, and the development of new technology in the long run. b. encourages the use of comparative advantage in the short run, but discourages the development of new technology in the long run. c. discourages the use of comparative advantage in the short run, but encourages the development of new technology in the long run. d. discourages the use of comparative advantage in the short run, and discourages the development of new technology in the long run.