Which of the following represents the Lucas supply function?
A. Y = f(Pe + P)
B. Y = f(P - Pe)
C. Y = f(P + Pe)
D. Y = f(Pe - P)
Answer: B
Economics
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If a consumer buys less gasoline because gas prices increased by 100 percent, even though all other prices have also increased by 100 percent, then
A) the consumer is paying too close attention to changes in relative prices. B) wages and prices are too flexible. C) the consumer has been fooled by money illusion. D) inflation is not a problem in the economy.
Economics
Risk is a problem faced:
A. only in market systems. B. only in command systems. C. in both market systems and command systems. D. in neither market systems nor command systems, only in laissez-faire capitalism.
Economics