The argument that when policy changes, people's behavior changes so that historical relationships between macroeconomic variables will no longer hold is known as
A) the Phillips curve.
B) the policy irrelevance hypothesis.
C) hysteresis.
D) the Lucas critique.
D
Economics
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International price discrimination for a good is possible if
A) goods are sold through the gray market. B) the price difference between two countries is greater than the transaction costs in arbitrage. C) the price difference between two countries is less than the transaction costs in arbitrage. D) None of the above.
Economics
Suppose you observed firms' inventory stocks drop by $100 billion. If you knew that aggregate expenditure was $3,000 billion, what would GDP be?
a. $3,000 billion b. $2,000 billion c. $2,900 billion d. $1,000 billion e. $3,100 billion
Economics