Reliance on expert opinion to predict consumer behavior has the advantage of being a relatively low cost approach to gathering information. In many situations, however, it is subject to several sources of bias that can undermine its reliability

The long-run aggregate supply curve shows:

A. the economy's actual growth rate whether things are going well or not. B. the economy's potential inflation rate if all is going well. C. the economy's potential growth rate if all is going well. D. the economy's actual inflation rate whether things are going well or not.

When individuals use ________ about an economic variable to make a decision, expectations are rational

A) only historical information B) all available information C) only information garnered in the private sector D) only information announced by the Fed