If expectations of the future inflation rate are formed solely on the basis of a weighted average of past inflation rates, then economists would say that expectation formation is

The decision firms make about new capital projects is most like the decision consumers make when they decide

A) whether to take a new job. B) which of two new jobs to take. C) what brand of coffee to buy. D) whether to buy a new house. E) whether to go on vacation.

The long-run aggregate supply when resources are fully employed

A) has no relationship with the production possibilities curve. B) will always be associated with a point outside the production possibilities curve. C) will always be associated with a point on the production possibilities curve. D) is determined by demand.