Believers in the hypothesis of rational expectations argue that: ...

[swpotter12]

Believers in the hypothesis of rational expectations argue that:
 a. expansionary fiscal and monetary policy can reduce unemployment without creating inflation.
  b. a trade-off exists between unemployment and inflation even in the long run.
 c. the Phillips curve is vertical even in the short run for expected changes in inflation.
 d. the Phillips curve is downward sloping even in the long run.

Question 2

What has been one of the results of globalization experienced by Eastern European nations after the fall of their socialist regimes?
 a. All traces of their traditional culture have disappeared.
  b. These countries have attracted foreign investment from industrialized countries, which have transferred cleaner technologies and thus, improved environmental quality.
  c. These countries have not yet adapted to capitalism, and a majority support a new movement to return to communism.
  d. Most national forests have been destroyed by multinational companies.
  e. Many new diseases have been introduced because of increased contact with the West.

[smrerig]

Answer to Question 1

c

Answer to Question 2

b