Multiple Choice
Which of the following is true?
A) Rational expectation theorists believe that an anticipated change in policies can alter real GDP in the short run.
B) Rational expectation theorists believe that an unanticipated change in policies can alter real GDP in the long run.
C) Rational expectation theorists believe that government economic policies designed to alter aggregate demand are effective at changing real output.
D) Activists believe that appropriate economic policies can alter aggregate demand.
E) Activists believe that economic policies cannot keep the rate of unemployment below the natural rate.
Correct Answer:

Verified
Correct Answer:
Verified
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