Rational expectation theory implies that accurately anticipated change in aggregate demand:
a. will increase RGDP in the long run
b. will affect RGDP and inflation only in the long run.
c. may affect RGDP but not nominal GDP.
d. will tend to be offset by the actions of input suppliers as they react to their inflation expectations.
d
Economics
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Which of the following algebraic forms of a demand curve yields an isoelastic demand curve (i.e. a demand with constant elasticity)?
A. Q = a - bP + cI B. log(Q) = a - b log(P) + c log(I) C. Q = a - b log(P) + c log(I) D. log(Q) = bP + cI
Economics
________ is a calculation that adds up costs and benefits using a common unit of measurement, like dollar values
A) Expenditure-income analysis B) Budget constraint analysis C) Revenue-income analysis D) Cost-benefit analysis
Economics