The rational expectations hypothesis implies that use of discretionary macro-policy as a stabilization tool will
a. be ineffective, even in the short run.
b. be effective in the short run but ineffective in the long run.
c. be effective both in the short run and long run.
d. make it possible to trade-off a higher rate of inflation for a lower rate of unemployment.
A
Economics
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When the long-run average cost curve is downward sloping,
A) economies of scale are present. B) diseconomies of scale are present. C) the firm experiences constant returns to scale. D) the average fixed cost curve must be upward sloping. E) The premise of the question is wrong because long-run average cost curves never slope downward.
Economics
We do not add up the value of all intermediate goods produced in 2000 and record them as part of 2000 GDP
Indicate whether the statement is true or false
Economics