MsJones Is a Professor at a University

Multiple Choice

Ms.Jones is a professor at a university.She strongly supports the rational expectations theory.She is likely to believe that the only time active policy has an impact on aggregate output is when:

A) an expansionary policy is implemented.
B) a recessionary policy is implemented.
C) policy changes are unannounced.
D) the economy has a recessionary gap.
E) the economy has an expansionary gap.