Economies of Experience Are Exhibited When

question 35

Multiple Choice

Economies of experience are exhibited when:

• A)it takes a professor a smaller quantity of time to prepare a lesson for a new class than for the first class he taught.
• B)an older professor is more intelligent than a younger professor.
• C)a professor goes into business as a consultant.
• D)a professor reaches age 65 and begins to get a senior citizen discount.

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Definitions:

Monetarists

Economists convinced that fluctuations in the money supply significantly impact short-term national output and affect price levels over extended periods.

Money Supply

The complete amount of currency resources available within an economy, covering cash, coins, and the totals in checking and savings accounts, at a particular time.

Potential Growth

The estimated rate at which an economy could grow considering the full utilization of its resources without causing inflationary pressures.

Rational Expectations Theory

The hypothesis that individuals make predictions about future economic activities based on past and current information and act rationally on those expectations.