The tendency to deviate from sound long-run plans in the short-run is known as ________
A) the failure of adaptive expectations
B) the failure of rational expectations
C) the time inconsistency problem
D) the NIMBY, or not in my backyard problem
C
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Investment spending includes spending on:
A. capital goods, residential housing, and changes in inventories. B. goods and services by federal, state, and local governments. C. durables, nondurables, and services. D. stocks, bonds, and other financial instruments.
A city's decision to limit smoking in public areas is an example of
A. The invisible hand at work. B. The market mechanism at work. C. Government intervention. D. Market success.
If Japan has a current account surplus, then it must:
A. have an offsetting capital account deficit. B. also have a surplus in its capital account. C. import more goods than it exports. D. have a positive balance of payments.
A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule:
Refer to the above table. Which of the following output-combinations is unattainable:
A. 1 steel and 80 wheat
B. 4 steel and 55 wheat
C. 30 wheat and 3 steel
D. 95 wheat and 0 steel