If We Compare the Model by Gregory Mankiw with That

question 13

Multiple Choice

If we compare the model by Gregory Mankiw with that of Robert Lucas, we realize that

• A)both assume rational expectations
• B)Mankiw assumes that firms are price takers, while Lucas assumes that firms are price setters
• C)Lucas assumes that firms are reluctant to change prices, while Mankiw assumes that firms have imperfect information about prices
• D)Lucas assumes that people have good information but make systematic forecast errors, while Mankiw assumes that people have imperfect information and therefore cannot make accurate forecasts
• E)all of the above

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Definitions:

Firearms

Weapons capable of firing a projectile using gunpowder or another propellant, including guns, rifles, and pistols.

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment.

Affective Response

An emotional reaction or response to stimuli, reflecting a person's feelings or emotions.

Appetite Change

A noticeable alteration in the desire to eat, which can include both an increase or decrease in hunger levels.