Multiple Choice
In the rational expectations view,
A) wages are flexible downward but prices are inflexible downward.
B) prices are flexible downward but wages are inflexible downward.
C) discretionary policy tends to be countercyclical.
D) discretionary policy tends to be ineffective.
Correct Answer:

Verified
Correct Answer:
Verified
Q61: An idea from monetarism that has been
Q63: Which of the following contributes to the
Q68: Under its recent policy of inflation targeting,
Q70: The theory of rational expectations concludes that<br>A)the
Q71: The real-business-cycle theory holds that business fluctuations
Q132: In the equation of exchange, V indicates
Q200: Most economists today would agree with the
Q203: Within the aggregate demand-aggregate supply framework, monetarists
Q274: New classical economics suggests that in the
Q276: According to real-business-cycle theory, recessions are caused