Multiple Choice
In the rational expectations model, government control over aggregate demand
A) can affect real output only if policies are unexpected.
B) has potential to change real output as long as aggregate supply is vertical.
C) gives it the ability to change real output and employment.
D) does not influence the economic behavior of individuals.
Correct Answer:
Verified
Correct Answer:
Verified
Q62: The short-run relationship between inflation and unemployment
Q63: Figure 33-2<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 33-2
Q64: The economy's self-correcting mechanism refers to the
Q65: Policies to lower the natural rate of
Q66: What will tend to happen to wages
Q68: Which of the following is most likely
Q69: Most economists believe that the theory of
Q70: An economy eliminates a recessionary gap by
Q71: When deciding on an appropriate course of
Q72: In the 1970s, why did the short-run