A Vocal Minority of Economists, Believers in the Theory of Rational

Multiple Choice

A vocal minority of economists, believers in the theory of rational expectations, insist that

A) the Phillips curve is downward sloping even in the short run.
B) the Phillips curve is vertical even in the short run.
C) a trade-off exists between inflation and unemployment even in the long run.
D) expansionary fiscal and monetary policy can reduce unemployment without creating inflation.