Multiple Choice
Critics of rational expectation theory believe:
A) most people are truly not very informed about the effects of a policy change.
B) most people do not adjust their behavior very rapidly to changes in government policies, in part because they are not informed about the effects of policy changes.
C) that wages and prices are not as flexible as the rational expectation theory assumes.
D) all of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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