Imperfect information is a critical assumption in the
a. classical model.
b. Keynesian model.
c. monetarist model.
d. new Keynesian model.
e. real business cycle model.
C
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The major reasons why people immigrate into the U.S. include the following, except:
A. Taking advantage of superior economic opportunities B. Escaping religious or political oppression in their home countries C. Reuniting with family members who are already U.S. immigrants D. Being kicked out of their home countries
The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
Competitive firms are able to set price above marginal cost when
A) the markup is less than the cost of going to another store. B) the markup is greater than the cost of going to another store. C) all consumers have full information. D) consumers know what other stores are charging.
A decrease in costs may not increase economic profit
Indicate whether the statement is true or false