Multiple Choice
The proponents of adaptive expectations believe that
A) there will be a substantial time lag before people anticipate the effects of a shift to a more expansionary macro-policy.
B) macro-policies that stimulate demand and place upward pressure on the general level of prices will temporarily increase output and employment.
C) discretionary changes in macro-policy can be made in a manner that will reduce the economic ups and downs of a market economy.
D) all of the above are true.
Correct Answer:
Verified
Correct Answer:
Verified
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