If rational expectations are assumed, inflation can be reduced with no corresponding increase in unemployment
a. True
b. False
Indicate whether the statement is true or false
True
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A stock is an IOU and a bond represents ownership in a company
Indicate whether the statement is true or false
A firm selling in a price-takers' market
A) can reduce its price without thereby lowering its marginal revenue. B) can reduce its price without thereby lowering its total revenue. C) faces a perfectly elastic demand curve. D) has marginal costs equal to marginal revenue at all levels of output.
Which of the following characteristics does perfect competition share with monopolistic competition?
a. price-taking firms b. zero long-run economic profit c. homogeneous product d. some barriers to entry e. economies of scale in production
As a result of the housing market crash overall output fell, and prices:
A. decreased because the magnitude of shift was smaller for aggregate demand than it was for aggregate supply. B. increased because the magnitude of shift was smaller for aggregate demand than it was for aggregate supply. C. increased because the magnitude of shift was larger for aggregate demand than it was for aggregate supply. D. decreased because the magnitude of shift was larger for aggregate demand than it was for aggregate supply.