In the novel how the markets fail by John Cassidy, 1. According
to rational expectations, anticipated government intervention will
not have any impact on the economy. Why? What does the empirical
data say about this idea?
LO4: Show why competitive markets fail to provide socially
efficient levels of
public goods; explain how the government can mitigate these
inefficiencies.
LO7: Show how government policies in international markets, such
as quotas and
tariffs, impact the prices and quantities of domestic goods and
services.
Please expert solve this managerial economics 2 questions
Are the markets efficient? If the markets were completely
efficient, how would you explain the dot-com bubble of the late
1990s and the subsequent bear market? Compare and contrast this
episode with the current housing market.