Author Question: If expectations are rational, can monetary and fiscal policy makers accurately control the effects ... (Read 93 times)

Shelles · **on:** Jun 30, 2018

If expectations are rational, can monetary and fiscal policy makers accurately control the effects their policies have on unemployment?
a. Yes, provided they announce policies in advance.
b. Yes, both policies are effective in altering unemployment in the desired ways.
c. No, because these effects depend on whether and to what extent people are fooled by those policies.
d. No, only fiscal policy can alter unemployment.

Question 2

The Asian tigers have experienced rapid economic growth in recent times. Hence, these countries are sometimes referred to as:
a. first-world countries.
b. newly industrialized countries.
c. the globalization limelight.
d. second-world countries.
e. the G-8 nations.