Discuss some of the implications of rational expectations
What will be an ideal response?
Answers should include a discussion of the implications of rational expectations on: (1 ) our understanding of the behavior of consumption and financial market variables; (2 ) the determinants of wage and price setting behavior; and (3 ) the theory, implementation, and effectiveness of policy.
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______________ can model a change in conditions which affects many, if not all, markets in the economy
Fill in the blank(s) with the appropriate word(s).
A government-inhibited good is one that
A) the political process has determined is socially undesirable. B) the political process has determined is socially desirable. C) freely competitive markets have determined is socially desirable. D) we want to encourage the consumption of.