Multiple Choice
Most economists believe that the theory of rational expectations is
A) more correct in the long run than the short run.
B) more correct in the short run than the long run.
C) correct in both the long run and short run.
D) incorrect because it is based on false logic.
Correct Answer:

Verified
Correct Answer:
Verified
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
Q67: In the rational expectations model, government control
Q68: Which of the following is most likely
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
Q73: If fluctuations in economic activity come from
Q74: Natural rate of unemployment is the normal