Why do economists sometimes treat decision makers as boundedly rational?
Economists often treat decision makers as boundedly rational because decision makers try their best for rationality but are constrained by limited information and limited processing abilities.
Economics
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If a nation produces more than it spends what do we know about: A. its net exports? B. its net capital outflow? C. its saving in relation to its domestic investment?
Economics
Compared to Keynesians, Real Business Cycle theorists
a) have greater optimism regarding markets b) give a larger role to stabilization policy c) believe technology plays a relatively minor role in short run fluctuations d) are more likely to claim that individuals are unresponsive to price changes e) are relatively unconcerned with productivity shocks
Economics