Compared to adaptive expectations, rational expectations would imply that the transition between the short-run and the long-run will take:
a. the same amount of time.
b. a longer period of time.
c. a variable period of time.
d. less time.
D
Economics
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________ keeps the exchange rate fixed in the short run but then adjusts its value at regular intervals to account for supply and demand pressures
A) The European Monetary System B) A managed floating C) A crawling peg D) A crawling float
Economics
Ceteris paribus, if consumer tastes change so that more people are eating broccoli, then what will happen to the market equilibrium for cabbage, a substitute good for broccoli?
A. Price will increase, and quantity will increase. B. Price will decrease, and quantity will decrease. C. Price will decrease, and quantity will increase. D. Price will increase, and quantity will decrease.
Economics