Answer:
b. could be low because people might adjust their expectations quickly if they found anti-inflation policy credible
Explanation:
In the given situation, it is mentioned that the rational expectations proponets said that the sacrified ratio would be lesser as the people wants to adjust their expectations in a fastest way in the case when they found that the anti-inflation policy is credible
Therefore as per the given situation, the option b is correct
Answer:
The correct answer is letter "B": demand tends to be inelastic.
Explanation:
Inelasticity is a characteristic that goods and services have by which their demand does not change in front of fluctuations in price.<em> Consumer staples are considered inelastic goods since people need them to cover basic needs. </em>
Inelasticity is calculated by dividing the percentage change in quantity demanded by the percentage change in price. If the result is lower than one (1) the demand for that good or service is inelastic.
The command-and-control strategy for pollution reduction refers to the standards on the methods used to reduce pollution. Command-and-control<span> (CAC) gives regulation sets that specific limits for </span>pollution<span> emissions and it defines methods and solutions how to reduce pollution. </span>
Answer:
Juanita should purchase the skirt at the store across town because the total economic cost will be lowest.
Explanation:
three options:
- local store 15 minutes away and a price of $103
- across town 30 minutes away and a price of $89
- neighboring city 1 hour away and a price of $63
Juanita makes $16 per hour at her work, and her purchase decision includes the opportunity cost of lost wages:
total economic cost:
- local store = $103 + [1/4 hours x 2 (round trip) x $16] = $111
- across town = $89 + [1/2 hours x 2 (round trip) x $16] = $105
- neighboring city = $63 + [1 hour x 2 (round trip) x $16] = $95
Juanita should purchase the skirt at the store across town because the total economic cost will be lowest ($105)
Opportunity costs are the benefits lost or extra costs incurred for choosing one activity or investment over another alternative. Economic costs include both accounting costs and opportunity costs.
Answer:
increase , decrease
Explanation:
Import tariffs are amount levied on the imports of goods. tariffs makes imports more expensive and discourages import.
if an import tariff is in place for a particular good, the import of that good would reduce and this would increase domestic producers to produce more of the good to meet the demand of the good. so output of domestic producers would increase.
Because output is consumed domestically, exports would reduce.
