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 58 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
:D TYSM

Laurenleakan

  • Member
  • Posts: 309
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Did you know?

Cucumber slices relieve headaches by tightening blood vessels, reducing blood flow to the area, and relieving pressure.

Did you know?

On average, the stomach produces 2 L of hydrochloric acid per day.

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

The Systems in Bronfenbrenner’s Ecological Theory The Systems in Bronfenbrenner’s Ecological Theory
Socrates's commitment to rational inquiry lived on through his disciples and became the ... Socrates's commitment to rational inquiry lived on through his disciples and became the ...
Gender Schema Theory Gender Schema Theory
The medical assistant is measuring the urine output from a patient who has an indwelling Foley ... The medical assistant is measuring the urine output from a patient who has an indwelling Foley ...
Factors that Increase Cardiac Output Factors that Increase Cardiac Output
The four identity statuses proposed by Marcia, based on Erikson's theory The four identity statuses proposed by Marcia, based on Erikson's theory
Video: Optic Nerve and Optic Disk Animation (Part 1 of 2)

For a complete list of videos, visit our video library