Multiple Choice
Rational expectation theory implies that accurately anticipated change in aggregate demand:
A) will increase RGDP in the long run.
B) will affect RGDP and inflation only in the long run.
C) may affect RGDP but not nominal GDP.
D) will tend to be offset by the actions of input suppliers as they react to their inflation expectations.
Correct Answer:
Verified
Correct Answer:
Verified
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