Under the rational expectations hypothesis, if wages adjust rapidly to new information about intended policy actions, the only time that changes in government policies have real effects is when

Generally speaking, the Tiebout model is _____

a. the idea that intergovernmental competition reveals consumer preferences for public goods b. the idea that the lack of mobility can be offset by intergovernmental comparison c. the idea that intergovernmental competition is Pareto superior d. the idea that mobility is not necessary to intergovernmental competition

The price elasticity of demand tells us about

a. The sensitivity of price to quantity b. The sensitivity of quantity to price c. The sensitivity of income to price d. The sensitivity of income to quantity