Most economists would agree that, unless it incorporates rational expectations or something like it, a model cannot account for
A) the Great Depression.
B) shifts in aggregate supply.
C) the relationship between consumption and income.
D) the stagflation of the 1970s.
E) the different initial impact of a permanent versus a temporary policy change.
E
Economics
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"Real business cycle" theory argues that business cycles do not, in fact, exist
Indicate whether the statement is true or false
Economics
Refer to the information provided in Figure 6.6 below to answer the question(s) that follow.
Figure 6.6Refer to Figure 6.6. Bill's budget constraint is BD. Bill's income is $800, the price of a bell pepper is $1, and the price of a bag of black beans is $1. At point B Bill is buying ________ bell peppers and ________ bags of black beans.
A. 600; 200 B. 800; 0 C. 0; 800 D. 400; 400
Economics