According to the Lucas supply function, if the expected price level is larger than the actual price level
A. real output increases.
B. real output decreases.
C. nominal output decreases.
D. nominal output increases.
Answer: B
Economics
You might also like to view...
If consumption behavior can be described as C = 50 + .8Y, then the saving function is
A) S = 50 + .2Y. B) S = -50 + .2Y. C) S = -50 + .8Y. D) S = 50 + .8Y.
Economics
Which of the following is NOT an example of the hurdle method of price discrimination?
A. Offering a mail-in rebate. B. Charging less for airline tickets if the trip includes a Saturday night stayover. C. Permanently reducing all prices by 10%. D. Giving a discount on movie tickets to people with a student ID.
Economics