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Rational Expectation Theory Implies That Accurately Anticipated Change in Aggregate

Question 12

Multiple Choice

Rational expectation theory implies that accurately anticipated change in aggregate demand:


A) ​will increase real GDP in the short run.
B) ​will affect real GDP and inflation only in the long run.
C) ​may affect nominal GDP but not real GDP in the short run.
D) ​will do none of the above.

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