The Lucas supply function, in combination with the assumption that expectations are rational, implies that announced policy changes
A. will have no effect on real output.
B. will have no effect on nominal output.
C. will have no effect on the actual price level.
D. will have no effect on the expected price level.
Answer: A
Economics
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If a country imposes a $10 tariff on a foreign monopolist, the price received by the monopolist, net of the tariff, will:
a. fall by $10. b. fall by less than $10. c. fall by more than $10. d. fall by $0.
Economics
Which of the following would not be expected to increase labor productivity?
A. Technological advance. B. The acquisition of more education and training by the labor force. C. An increase in the size of the labor force. D. The realization of economies of scale.
Economics