Author Question: If rational expectations cause people's price expectations to be generally correct, active policy ... (Read 39 times)

MGLQZ · **on:** Jun 30, 2018

If rational expectations cause people's price expectations to be generally correct, active policy will influence the price level but not output.
a. True
b. False
Indicate whether the statement is true or false

Question 2

As long as wage increases do not exceed labor productivity growth rates, a stable price level should be the result.
a. True
b. False
Indicate whether the statement is true or false