Author Question: Rational expectation theory implies that accurately anticipated change in aggregate demand: a. will ... (Read 31 times)

go.lag · **on:** Jun 30, 2018

Rational expectation theory implies that accurately anticipated change in aggregate demand:
a. will increase real GDP in the short run.
b. will affect real GDP and inflation only in the long run.
c. may affect nominal GDP but not real GDP in the short run.
d. will do none of the above.

Question 2

Which of the following stands true for income inequality?
a. The benefits of increased economic growth are widely shared in the First World countries.
b. As a result of globalization, income inequality in China has decreased.
c. The decrease in income inequality in China is an effect of socialist policies in that country.
d. The gap between rich countries and globalized developing countries has shrunk.
e. Internal migration has played a big role in reducing the income inequality in China.