When using rational expectations, forecast errors will, on average, be ________ and ________ be predicted ahead of time

A) positive; can
B) positive; cannot
C) negative; can
D) zero; cannot

D

Economics

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The price elasticity of demand for a demand curve that has a zero slope is

A) zero. B) one. C) negative but approaches zero as consumption increases. D) infinity.

Economics

If the price of gasoline rose 50% during a period in which the general price level rose 100%, economic theory would predict Select one:

A) a decline in the quantity of gasoline demanded.
B) an increase in the quantity of gasoline demanded.
C) a decrease in the demand for gasoline.
D) an increase in the supply of gasoline.
E) less driving by motorists.

Economics