Since a long run consists of many short runs, the classical model is
a. incorrect every time we look at output data
b. accurate during the short run
c. paradoxically quite accurate in the long run; however, it is not very accurate in the short run
d. our best guide to fluctuations in the economy
e. paradoxically quite accurate in the short run; however, it is not very accurate in the long run
C
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Sarah consumes only strawberries and cream, and she is spending all of her income. Her marginal utility of her last dish of strawberries is 200 and her marginal utility of her last pint of cream is 200
The price of strawberries is $1.00 per dish and the price of cream is $2.00 per pint. To maximize her utility, Sarah should A) buy more strawberries and less cream. B) buy more cream and less strawberries. C) not change her purchases of strawberries and cream. D) definitely buy no cream at her consumer equilibrium.
Apart from the United States, in countries where central bank board members serve fixed terms of office,
A) none have terms as long as fourteen years. B) many serve for life or good behavior. C) all have terms longer than fourteen years. D) the head of the central bank rarely has a term longer than one year.