When a person bases her future expectations for the economy on all available current data and her own judgment about future policy effects, this is known as
A) the policy irrelevance proposition.
B) rational expectations.
C) irrational expectations.
D) the new classical theory.
B
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A closed shop is a
A) strike by a union in sympathy with another union's strike or cause. B) dispute involving two or more unions over which should have control of a particular jurisdiction. C) business enterprise in which employees must belong to the union before they can be hired and must remain in the union after they are hired. D) legal environment in which businesses may hire nonunion members conditional on their joining the union by some specified date after employment begins.
Changes in demand will often be met with changes in output rather than changes in prices because of formal and informal contracts.
Answer the following statement true (T) or false (F)