Which of the following refers to a relatively high correlation among the independent variables of a regression equation?

Consumer sovereignty means that ______.

a. consumers vote with their dollars in a market economy b. governments have no power in determining which products will be made c. consumers have no obligation to pay taxes to the government d. governments must provide people with fundamental goods and services

Which statement is TRUE when rational expectations exist and there is a change in monetary policy which is expected?

A. The change in monetary policy does not change equilibrium in either the short-run or long-run. B. The change in monetary policy leads to a change in aggregate demand that leads to a temporary short-run equilibrium that is different from the long-run equilibrium. C. The change in monetary policy lead to a simultaneous shift in the long-run aggregate supply curve. D. The change in monetary policy leads to a simultaneous shift of the short-run aggregate supply curve.