« previous next »

Author Question: According to the theory of rational expectations, expansionary fiscal policy that is anticipated ... (Read 82 times)

folubunmi

  • Hero Member
  • *****
  • Posts: 524
on: Jun 30, 2018
According to the theory of rational expectations, expansionary fiscal policy that is anticipated will:
 a. cause wage expectations to adjust downward immediately following the lower price level.
  b. increase the real wage rate in the long run.
  c. cause a permanent decline in the natural rate of unemployment.
  d. decrease the real wage rate in the long run.
  e. cause wage expectations to adjust upward immediately following the higher price level.

Question 2

Using the midpoint method for calculating the price elasticity of demand, you get the same elasticity of demand between two points, whether you are moving up the demand curve or down it.
 a. True
  b. False
  Indicate whether the statement is true or false


ricroger

  • Sr. Member
  • ****
  • Posts: 352
Reply #1 on: Jun 30, 2018
Answer to Question 1

e

Answer to Question 2

True


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

folubunmi

  • Hero Member
  • *****
  • Posts: 524
Reply #2 on: Jun 30, 2018
Thank you


ricroger

  • Sr. Member
  • ****
  • Posts: 352
Reply #3 on: Jun 30, 2018
No problemo


« previous next »
 

Did you know?

Elderly adults are living longer, and causes of death are shifting. At the same time, autopsy rates are at or near their lowest in history.

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Did you know?

Essential fatty acids have been shown to be effective against ulcers, asthma, dental cavities, and skin disorders such as acne.

Generally, the total tax burden in the United States is much lower than that of other industrialize Generally, the total tax burden in the United States is much lower than that of other industrialize
According to Kohlberg’s theory, only a few individuals, such as Martin Luther King, Jr. (left) and ... According to Kohlberg’s theory, only a few individuals, such as Martin Luther King, Jr. (left) and ...
Contact theory indicates that prejudice decreases and relations improve when individuals of ... Contact theory indicates that prejudice decreases and relations improve when individuals of ...
Food policy can drive the food industry Food policy can drive the food industry
Big Bang Theory Big Bang Theory
The Two-Factor Theory of Emotion The Two-Factor Theory of Emotion
Video: Mendel's Pea Experiment

For a complete list of videos, visit our video library