To say that stock prices follow a "random walk" is to argue that stock prices
A) rise, then fall, then rise again.
B) rise, then fall in a predictable fashion.
C) tend to follow trends.
D) cannot be predicted based on past trends.
D
Economics
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The data in the above table show that when the price level is 120, the economy
A) is in a long-run macroeconomic equilibrium. B) has an inflationary gap. C) has a recessionary gap. D) will have falling money wage rates sometime in the future.
Economics
Refer to the information provided in Figure 32.2 below to answer the question(s) that follow.
Figure 32.2Refer to Figure 32.2. According to the new classical economists, under rational expectations an expected decrease in government spending would
A. shift AD1 to the left. B. shift AS1 to the right. C. shift AD1 to the right. D. not change AD and AS.
Economics