The theory by which people optimally use all available information when forecasting the future is known as

Refer to Figure 11-4. What happens to the average fixed cost of production when the firm increases output from 150 to 200?

A) It could rise or fall depending on what happens to total cost. B) It rises. C) It falls. D) It remains constant.

Suppose there is an increase in expected future output. This will cause which of the following to occur?

A) the IS curve to shift left in the current period B) the IS curve to shift right in the current period C) the LM curve to shift up in the current period D) the LM curve to shift down in the current period