The view that expectations change relatively slowly over time in response to new information is known in economics as

Which of these is a central argument of Keynes's General Theory? a. Competition does not allocate resources efficiently in a modern industrial economy

b. Full employment can be maintained even during a major recession if wage rates are lowered far enough. c. Modern industrial economies do not tend automatically toward full employment rates of output. d. Money does not play an important role in either causing or curing recession. e. Government can best stabilize the economy by letting the market system automatically adjust toward full employment.

Assuming price elasticity of demand is reported as an absolute value, a good with unit elastic demand has an elasticity:

A. between zero and one. B. greater than one. C. less than one, but greater than zero. D. equal to one.