Multiple Choice
If we compare the frictionless neoclassical theory with the rational expectations approach, we can conclude that in both cases
A) wages and prices are assumed to be rigid
B) there is little or no room for stabilization policy since markets are assumed to clear rapidly
C) the AS-curve is upward sloping in the short run but vertical in the long run
D) the effects of fiscal policy on output are permanent
E) all of the above
Correct Answer:
Verified
Correct Answer:
Verified
Q11: The rational expectations equilibrium approach to macroeconomics<br>A)stresses
Q12: If all economic agents have rational expectations,<br>A)wages
Q13: If we compare the model by Gregory
Q14: The random walk of GDP model asserts
Q15: The theory of the intertemporal substitution of
Q17: The rational expectations equilibrium approach has influenced
Q18: According to the Lucas' rational expectations approach,<br>A)people
Q19: According to the rational expectations equilibrium approach<br>A)announced
Q20: Assume people expect money supply to rise
Q21: The rational expectations equilibrium approach<br>A)is supported by