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The proponents of rational expectations believe that:
1. There will be a substantial time lag before people anticipate the eventual effects of a shift to a more expansionary macro-policy.
2. Macro-policies that stimulate demand and place upward pressure on the general level if prices will temporarily increase output and employment.
3. The inflationary side effects of expansionary policies will be anticipated quickly, and therefore, even their short-run effects on real output and employment will be minimal.
4. Discretionary changes in macro-policy can be made in a manner that will reduce the economic ups and downs of a market economy.
a company uses two variable inputs labor l and materials m to produce its output. at the companys current level of
What fiscal and monetary policies are appropriate at this time pertaining to the Affordable Care Act? What monetary and fiscal policies are appropriate during this government shut down, or what will be necessary immediately following the shut dow..
A perfectly competitive firm faces a market price of $10 for its output X. It owns two plants, A and B, whose total costs are TCA = 10 + 2X + .25X2 (to the second power) TCB = 15 + .4X + .1X2 (to the second power).
HAVE THESE RATES INCREASED OR DECREASED SINCE THE SAME WEEK IN 2008? (FOR EXAMPLE, IF YOU ARE DOING THIS ASSIGNMENT ON AUGUST 18, USE THE RATE FOR THE WEEK INCLUDING AUGUST 18, 2008.)
the area of arectangularlawn is 30m2. during landscaping the length was decreased by 1m and the width increased by 1m
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How do costs play into your everyday life? For example, why might it be cheaper to drive on a toll-road vs. a free-access interstate Also, can you identify situations where you may fall victim to the sunk cost fallacy (we all do)
why can the distinction between fixed costs and variable costs be made in the short run? classify the following as
Is it possible for companies both to maximize financial value for shareholders and to act responsibly in the communities in which they operate. Cite examples of companies that are doing so.
Investment rejects some of the furnishings because they do not match the plans, and subsequently refuses to allow Justus to finish the work or to col¬lect payment. Could Justus sue successfully for payment for the entire contract.
research the university library and internet and select a recent news article concerning trends in consumption
2) Due to expanded growth in a certain portion of the city, a new waste truck capacity is needed. An additional truck can be purchased now to replace the presently owned assets. The city uses a 5% interest rate for project evaluation. It is eco..
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