This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The rational expectations theory indicates that expansionary policy will: a. stimulate real output ... (Read 101 times)

beccaep

  • Hero Member
  • *****
  • Posts: 535
on: Jun 30, 2018
The rational expectations theory indicates that expansionary policy will:
 a. stimulate real output in the long run but not in the short run.
  b. expand real output and employment if the public quickly anticipates the effects of the expansionary policy.
  c. equalize real and nominal interest rates during lengthy periods of inflation.
  d. fail to increase employment because individuals will anticipate it and take actions that will offset its impact.

Question 2

Which of the following is correct?
 a. People whose nominal incomes rise faster than the rate of inflation gain purchasing power.
  b. Real income equals nominal income divided by the CPI as a decimal.
  c. The percentage change in real income equals the percentage change in nominal income minus the percentage change in CPI.
  d. All of these.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

irishcancer18

  • Sr. Member
  • ****
  • Posts: 310
Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

d


beccaep

  • Member
  • Posts: 535
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

nyrave

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Did you know?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

The Systems in Bronfenbrenner’s Ecological Theory The Systems in Bronfenbrenner’s Ecological Theory
Environmental policy Environmental policy
Set-Point Theory Set-Point Theory
Modern Cell Theory Modern Cell Theory
The TaqMan approach to quantitative real-time PCR (qPCR) The TaqMan approach to quantitative real-time PCR (qPCR)
Number line (real numbers) Number line (real numbers)
Video: baroreceptors

For a complete list of videos, visit our video library