The primary reason that short-lived shocks can have long-run effects is
A) the nonneutrality of money.
B) misperceptions by the public over the actual price level and the expected price level.
C) the presence of rational expectations among the public.
D) the presence of propagation mechanisms.
D
Economics
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Last year's price level was 120 and since then there has been a 5 percent inflation. This year's price level is
A) 125. B) 126. C) 130. D) none of the above.
Economics
What was not true about the New England colonial economy?
a. Fishing was a major economic activity. b. It was a net importer of food and fiber. c. Shipping was a major economic activity. d. It was the most productive area in terms of agriculture.
Economics