The proponents of adaptive expectations believe that:
a. there will be a substantial time lag before people anticipate the effects of a shift to a more expansionary macro-policy.
b. macro-policies that stimulate demand and place upward pressure on the general level of prices will temporarily increase output and employment.
c. discretionary changes in macro-policy can be made in a manner that will reduce the economic ups and downs of a market economy.
d. all of these are true.
d
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Which of the following statements is true?
A) Adult males, adult females, and teenagers all have similar rates of unemployment due to job losses. B) Almost half of the total teenage unemployment rate appears to be due to the search for the first job. C) Relative to adult males, adult females and teenagers have more frequent unemployment due to reentry and higher quit rates. D) All of the above.
Which of the following serve as automatic stabilizers?
a. Transfer payments b. Prices c. Imports d. All of the above serve as automatic stabilizers e. None of the above serve as automatic stabilizers