Multiple Choice
If the rational expectation theory is accurate, equilibrium real GDP will change in the short run:
A) whenever the aggregate demand curve shifts.
B) only if discretionary fiscal policy is used.
C) only if there is a shift in aggregate demand that could not have been predicted from the information available to the public.
D) only if discretionary monetary policy is used.
Correct Answer:

Verified
Correct Answer:
Verified
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