In the context of the evaluation of the efficient markets hypothesis, pricing anomalies refer to
A) the existence of trading strategies that appear to have offered above-normal returns.
B) the gap between actual and expected prices.
C) the spread between the price at which a broker will purchase stock from an investor and the price at which the broker will sell stock to an investor.
D) the difficulty in practice of computing stock prices on the basis of expectations of future dividends.
A
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Refer to Figure 22-3. Which of the following would cause an economy to move from a point like A in the figure above to a point like B?
A) an increase in capital per hour worked B) a decrease in capital per hour worked C) an improvement in technology D) a technological regression
If the equilibrium level of real GDP per year is greater than the full-employment level of GDP, then
A. the economy is at full employment with no price changes. B. a recessionary gap occurs. C. an inflationary gap occurs. D. the economy expands the level of real GDP.