According to the Theory of Rational Expectations,the "Fooling" of Workers

Multiple Choice

According to the theory of rational expectations,the "fooling" of workers in Friedman's model

A) is rational,since sudden unforeseeable changes in aggregate demand can and do occur.
B) is rational,since workers are always on their labor supply curve.
C) is not rational,since workers should learn to immediately link unexpected wage changes to wrongly-forecast price levels.
D) is not rational,since workers are often thrown off of their labor supply curve.