Multiple Choice
Economists of the rational expectations school believe that expansionary monetary policy is fully effective only if
A) the policy is anticipated by workers and firms
B) aggregate supply shifts to the left
C) the economy is operating at or above its potential output level
D) policy makers follow through on their previously announced plans
E) the policy is totally unexpected
Correct Answer:
Verified
Correct Answer:
Verified
Q1: The long-run Phillips curve<br>A)represents the fact that
Q2: The hypothesis that the economy tends toward
Q3: If an economist of the rational expectations
Q4: When self-correcting forces cure a recessionary gap,<br>A)money
Q5: In total,the lags associated with discretionary policy
Q7: Economist A.W.Phillips believed that<br>A)the Fed should follow
Q8: If the economy were in a recession,which
Q10: Those of the rational expectations school<br>A)favor monetary
Q11: The time it takes for a new
Q23: Before discovering that the short-run Phillips curve