The staggering of wage and price decisions suggests that
A) people do not possess rational expectations.
B) people do possess rational expectations.
C) the economy will adjust slowly to shocks even if people possess rational expectations.
D) the Lucas critique is entirely correct.
E) real business cycle theory is correct.
C
Economics
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Suppose that Mel (who is 27 ) is not working, but looked for a job as recently as 2 months ago. Mel would like a job and he is available for work. He is considered
A) unemployed. B) a member of the labor force and unemployed. C) a member of the labor force, but not unemployed. D) a member of the working-age population E) a marginally attached worker.
Economics