The Lucas supply function, in combination with the assumption that expectations are rational, implies that if a monetary policy change is announced to the public
A. the change in real output will be negative.
B. the change in real output will be positive.
C. there will be no change in real output.
D. Both A and B are possible, depending on they type of monetary policy change that has been announced.
Answer: C
Economics
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The above table gives the demand schedule for Billy Bob's BBQ ribs. The demand for Billy Bob's ribs over the price range of $1 per pound to $3 per pound is
A) perfectly elastic. B) elastic. C) unit elastic. D) inelastic.
Economics
You like to sleep until 11:00 am during the semester. What is the opportunity cost of attending an 8:00 am class?
A) nothing, since you can go back to bed later B) sleep C) obtaining the notes from the 8:00 am class D) the money you spend on coffee to stay awake
Economics