Multiple Choice
Under which of the following assumption can activist policies have sizable effects on aggregate demand?
A) rational inattention
B) infrequent information updates
C) habit formation among people
D) all of the above
Correct Answer:

Verified
Correct Answer:
Verified
Q122: Suppose that the inflation rate has been
Q123: The theory of new Keynesian inflation dynamics
Q124: New Keynesian inflation dynamics predicts that an
Q125: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Use the above
Q126: Deviations of the actual unemployment rate away
Q128: What kinds of unemployment are associated with
Q129: An unexpected increase in aggregate demand causes<br>A)
Q130: Under the rational expectations hypothesis, if wages
Q131: Which statement is TRUE when rational expectations
Q132: More recent studies of new Keynesian inflation