Multiple Choice
The hypothesis that assumes that individuals form expectations about the future based on Javailable information and that individuals act on that information is called the
A) random expectations theory.
B) rational information hypothesis.
C) rational expectations hypothesis.
D) adaptive expectations hypothesis.
Correct Answer:
Verified
Correct Answer:
Verified
Q22: According to Keynes, the remedy for a
Q25: A policy implication of Keynesian economics is
Q44: Early classical macroeconomics was based largely on
Q54: The rational expectations hypothesis suggests that monetary
Q55: According to new classical economics, short-run stabilization
Q59: Suppose the economy is initially in long-run
Q65: The theory that dominated macroeconomic thinking in
Q78: In 1979, the CPI rose 13.5%, the
Q84: In the 1960s, despite the successful application
Q98: Which of the following is true about