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

Author Question: The rational expectations hypothesis implies that discretionary macro-policy will: a. be ... (Read 81 times)

rmenurse

  • Hero Member
  • *****
  • Posts: 513
on: Jun 30, 2018
The rational expectations hypothesis implies that discretionary macro-policy will:
 a. be ineffective, even in the short run.
  b. be effective in the short run but ineffective in the long run.
  c. be effective both in the short run and long run.
  d. make it possible to trade-off a higher rate of inflation for a lower rate of unemployment.

Question 2

Suppose you received a 5 percent increase in your nominal wage. Over the year, inflation ran about 2 percent. Which of the following is true?
 a. Your real wage increased.
  b. Your nominal wage decreased.
  c. Both your nominal and real wages decreased.
  d. Although your nominal wage rose, your real wage decreased.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ergserg

  • Sr. Member
  • ****
  • Posts: 338
Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

a


rmenurse

  • Hero Member
  • *****
  • Posts: 513
Reply #2 on: Jun 30, 2018
Correct answers!


ergserg

  • Sr. Member
  • ****
  • Posts: 338
Reply #3 on: Jun 30, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

Eating food that has been cooked with poppy seeds may cause you to fail a drug screening test, because the seeds contain enough opiate alkaloids to register as a positive.

Jacob, Monod, and Pardee's hypothesis for the function of the lacI region Jacob, Monod, and Pardee's hypothesis for the function of the lacI region
Insect species diversity on British host trees supports the area hypothesis. Insect species diversity on British host trees supports the area hypothesis.
The Activation-Synthesis Hypothesis of Dreaming The Activation-Synthesis Hypothesis of Dreaming
The wobble hypothesis The wobble hypothesis
Types of policy Types of policy
One hypothesis for the evolution of the eukaryotes One hypothesis for the evolution of the eukaryotes
Video: Acid-base imbalances - metabolic acidosis and alkalosis

For a complete list of videos, visit our video library