^{Let Price Expectations Be Represented by Pe = P^}

question 33

Multiple Choice

^{Let price expectations be represented by Pe = P^ + bP}i ^{-P^) , with Pe} representing firms' expected general price indicators, representing some ^{general forecast of future prices, and P}i ^{representing the firms' own prices. If b}1 ^{were the b coefficient for some large firm in a primary industry like steel and b}2 ^{were the b coefficient for a small firm in an unimportant, endproduct} industry, then you would expect that

• A) ^b1 ^{> b}2^.
• B) ^b1 ^{< b}2^.
• C) ^b1 ^{= b}2^.
• D) any of the above could hold depending on the foreign trade significance of the two industries.
• E) any of the above could hold depending on unspecified economic circumstance.

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Definitions:

Superstructure

A society's shared sense of identity and worldview. The collective body of ideas, beliefs, and values by which a group of people makes sense of the world- its shape, challenges, and opportunities- and understands their place in it. This includes religion and national ideology.

Worldview

The collective body of ideas that members of a culture generally share concerning the ultimate shape and substance of their reality.

Ultimate Shape

The final or most advanced state of development or evolution something achieves, after undergoing various changes or processes.

Cultural Infrastructure

refers to the physical and organizational structures, facilities, and systems that support the cultural activities, heritage, and creative expression within a community or society.