In which of the following situations would reliance on expert opinion as a basis for a managerial decision be most preferred?
A) When the product can be packaged with a variety of price and quality combinations.
B) When the business in question serves as a supplier of inputs to other businesses, especially in multi-product situations where other strategies may be prohibitively expensive.
C) When the level of economic activity can have a significant effect on the demand for the firm's output.
D) When the product being marketed is relatively new.
B
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Real business cycle theorists are critical of monetarist reduced-form evidence because they believe
A) money is the most important cause of changes in aggregate demand. B) there is reverse causation from the business cycle to money. C) there is reverse causation from money to the business cycle. D) business cycles do not exist.
When we try to measure real GDP and the price level, if we underestimate the growth in real GDP, we will
A) always underestimate the rate of inflation. B) sometimes underestimate the rate of inflation. C) always overestimate the rate of inflation. D) sometimes overestimate the rate of inflation.