One Criticism of the Cobweb Model Is That

question 8

Multiple Choice

One criticism of the cobweb model is that:

• A)students form rational expectations of the effect of changes in labor demand and adjust their supply responses accordingly
• B)the prediction of chronic boom-bust cycles is not borne out in the real world
• C)students adjust career decisions based on starting salaries rather lifetime earnings
• D)demand is likely to shift as the market approaches equilibrium,so that equilibrium is never achieved

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Definitions:

Mamm/o

A prefix related to the breast or mammary glands.

Men/o

A prefix relating to the menstrual cycle or menstruation.

Retro-

A prefix meaning backward or behind, often used in medical and scientific contexts to indicate reversal or a backward position.

Post-

A prefix meaning after in time or sequence, following, or subsequent to.