Elasticity of Supply

What will be an ideal response?

Small change in price will lead to large change in quantity supplied

Economics

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Explain the rational expectations hypothesis

What will be an ideal response?

Economics

Which of the following implies that a model is an approximation?

A) The model is not based on any assumption. B) The predictions of the model are mostly wrong. C) The predictions of the model will hold in most cases but not all. D) The predictions of the model cannot be tested with data.

Economics