Multiple Choice
One key assumption behind the policy irrelevance proposition is that
A) wages are "sticky" downward.
B) prices are "sticky" upward.
C) the rational expectations hypothesis holds.
D) markets are not purely competitive.
Correct Answer:
Verified
Correct Answer:
Verified
Q191: Which statement is TRUE when rational expectations
Q192: The Phillips curve shows<br>A) the relationship between
Q193: Cyclical unemployment is negative when<br>A) the inflation
Q194: The menu cost theory suggests that<br>A) there
Q195: The term for a pattern of initially
Q197: Real business cycles are mostly a result
Q198: With discretionary policy making, fiscal and monetary
Q199: Historical evidence suggests that<br>A) the Phillips curve
Q200: An unexpected increase in aggregate demand<br>A) will
Q201: The short run aggregate supply (SRAS) curve