Explain what economists mean when they apply the rationality assumption
What will be an ideal response?
The rationality assumption means that people do not intentionally make themselves worse off. It does not deal with the interior reasoning of a person or the psychology of a person. Instead, rationality applies to the way people actually behave in a world of scarcity.
Economics
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When aggregate demand increases,
A) the price level is likely to rise as GDP rises. B) the price level is likely to fall as GDP rises. C) aggregate supply will shift to the right. D) aggregate supply will shift to the left.
Economics
The value of a country's exports is listed in its balance of payments account as a(n)
a. credit b. debit c. payment d. investment e. unilateral transfer
Economics