Economists Gary Becker and Kevin Murphy are associated with which of the following?
A) They discovered that price changes have both income and substitution effects.
B) They have argued that social factors are not important in explaining the choices consumers make.
C) Consumers appear to receive utility from consuming goods they believe are popular.
D) They discovered the first example of a Giffen good.
C
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Braun and Evans found that
A) the measured Solow residual varied sharply over the seasons. B) electricity use by producers rises sharply in economic upturns. C) professional forecasters have rational expectations of inflation. D) shocks to fiscal policy are the main source of business cycle fluctuations.
Assuming that C + Ir + G > C + I + G, then
a. there is an unintended inventory accumulation. b. there is an unintended inventory shortfall. c. aggregate demand is less than output. d. Both b and c