Rational expectations refer to
A. the use of all available information in forecasting economic variables.
B. the use of aggregate supply to forecast unemployment.
C. the use of opportunity costs to forecast inflation.
D. disinflation.
A. the use of all available information in forecasting economic variables.
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The central question in economics is how to:
a. deal with the problem of scarcity. b. change government economic policy. c. change people's wants to match their needs. d. manage money and become wealthy.
What are the two basic principles of aggregation?
What will be an ideal response?
A. boiling temperature unit. B. base tax utility. C. British thermal unit. D. base technology utility
A. raise the temperature of one pound of water by one degree Fahrenheit. B. boil one gallon of water for one minute. C. raise the air temperature one degree Celsius for one hour. D. raise the temperature of one pint of water by one degree Celsius.
Suppose the demand for hot dogs decreases. In the short run, firms that produce hot dogs will experience a fall in prices, which will induce them to:
A. increase production and increase the number of workers. B. decrease production and increase the number of workers. C. decrease production and reduce the number of workers. D. increase production and reduce the number of workers.