Which of the Following Would Be Strong Evidence That Imperfect

question 43

Multiple Choice

Which of the following would be strong evidence that imperfect information explained departures of actual demand from potential?

• A) noting that the theory of imperfect information provides a story of how the departure might come about without relying on sticky prices
• B) observing that positive price shocks in the real world seem to happen just prior to an economic boom
• C) observing that positive price shocks in the real world seem to happen just prior to an economic recession
• D) observing that negative price shocks in the real world seem to happen just before an economic boom
• E) none of the above

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Definitions:

Acknowledgement-Of-Service

A legal document indicating that a party has received the legal papers being served.

Confirmation-Of-Service

A verification process or document that proves a service, such as mailing legal documents or completing a transaction, has been provided or delivered.

Articulate

The ability to express oneself clearly and effectively in spoken or written form.

Inexperienced Witness

A witness who lacks familiarity, knowledge, or experience in the matter to which they are attesting.