Which of the following would be evidence against rational expectations?
a. unpredictable changes in policy have real effects.
b. new information leads to changes in output.
c. the public never make mistakes with respect to price level predictions.
d. changes in stock prices change much more often than new information becomes available.
D
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Sonya's budget for magazines and chocolate bars is $50. Her marginal utility from these goods is shown in the table above. The price of a magazine is $5 and the price of a chocolate bar is $2.50
Sonya currently buys 4 magazines and 12 chocolate bars. To maximize her utility, she should A) buy more chocolate bars and fewer magazines. B) buy more magazines and fewer chocolate bars. C) buy more of both goods. D) stay with the current combination of goods.
We infer the distribution of income from the distribution of abilities
Indicate whether the statement is true or false