Answer the following statement(s) true (T) or false (F)
1.The belief that workers and consumers incorporate the likely consequences of government policy changes into their expectations by quickly adjusting wages and prices is known as rational expectations theory.
2.Professor Robert Lucas, of the University of Chicago, developed the Phillips curve.
3.Rational expectations theorists believe that wages and prices are flexible.
4.Rational expectations theorists believe that government policies designed to alter aggregate demand are highly effective.
5.Real business cycle theorists believe that unexpected changes in the money supply cause fluctuations in real GDP.
1.true
2.false
3.true
4.false
5.false
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During the Great Depression of the 1930s when the unemployment rate was exceptionally high due to the Great Depression, the government had employment programs, such as the Civilian Conservation Corps, which built campsites and planted trees. These programs were aimed at reducing which type of unemployment?
A) cyclical B) avoidable C) structural D) frictional E) discouraged
Which characteristic is associated with monopolistic competition?
A) collusion B) product differentiation C) small number of firms D) awareness of rival firms in the market