Multiple Choice
A shortcoming of the rational expectations hypothesis is that
A) it ignores short-term wage stickiness.
B) people prefer rational ignorance in making decisions.
C) it ignores the role of saving.
D) it is inconsistent with the long-run Phillips curve.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q6: Real wages show how much goods and
Q7: Cite three factors that contributed to the
Q8: One major conclusion of the rational expectations
Q9: Wages above market-clearing rates, intended to improve
Q10: Workers work for the sake of making
Q12: _ occurs when both inflation and unemployment
Q13: One of the key factors leading to
Q14: Which of these would lead to increased
Q15: Adaptive expectations are formed when people use
Q16: If wages increase 4% faster than productivity,