Multiple Choice
If the markets in the economy are characterized by rational expectations,then
A) predictable changes cause neither the AD nor the SAS curves to shift.
B) predictable changes in monetary policy are ineffective in changing output.
C) unpredictable monetary policy is ineffective in changing prices.
D) unpredictable fiscal policy is ineffective in changing prices.
Correct Answer:
Verified
Correct Answer:
Verified
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