Author Question: In the rational expectations model a. markets are perfectly competitive and in equilibrium. b. ... (Read 89 times)

wenmo · **on:** Jun 30, 2018

In the rational expectations model

a. markets are perfectly competitive and in equilibrium.
b. markets may not clear even if wages and prices are otherwise perfectly flexible.
c. markets may temporarily be in disequilibrium.
d. only anticipated changes in aggregate demand affect output.

Question 2

According to Douglass North (1981, 1993), to knowledgeably understand our present economy or to strategically speculate about its future, it is important to explain the structure and performance of economies through time.

Indicate whether the statement is true or false