If people take into account the expected behavior of fiscal and monetary authorities in forecasting the behavior of inflation rates, they are most likely forming their projections using
A. adaptive expectations.
B. contractionary expectations.
C. inflationary expectations.
D. rational expectations.
D. rational expectations.
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Workers laid off as a result of a recession suffer
A) structural unemployment. B) seasonal unemployment. C) natural unemployment. D) cyclical unemployment. E) frictional unemployment.
One way to ensure cooperation in an infinitely repeated simultaneous game is
A) to always play the dominant strategy. B) to punish the player that reneges on agreements. C) to never punish any player. D) to always punish all players.
Monopsonistic exploitation is
A) measured by the area above the supply curve but below the wage paid. B) the difference between the marginal revenue product of a worker and the wage received by the worker. C) measured by the height of the supply curve of labor. D) the cost to society from unions.
Which of the following is an example of an intermediate good?
a. Sugar bought by a bakery b. Sugar bought by a family c. Furniture bought by a family d. Burgers bought at a restaurant e. Medicines bought at a pharmacy