Author Question: According to economists of the rational expectations school, _____. a. the passive approach must be ... (Read 70 times)

swpotter12

  • Hero Member
  • *****
  • Posts: 527
According to economists of the rational expectations school, _____.
 a. the passive approach must be adopted because they believe the economy is too complex
  b. individual forecasts about policies can never be right
 c. anticipated monetary policy can affect the output level
 d. discretionary policy can stabilize the economy
 e. discretionary policy should be completely avoided

Question 2

Ms. Jones is a professor at a university. She strongly supports the rational expectations theory. She is likely to believe that the only time active policy has an impact on aggregate output is when:
 a. an expansionary policy is implemented.
  b. a recessionary policy is implemented.
  c. policy changes are unannounced.
 d. the economy has a recessionary gap.
 e. the economy has an expansionary gap.



mirabriestensky

  • Sr. Member
  • ****
  • Posts: 325
Answer to Question 1

e

Answer to Question 2

c



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

Did you know?

By definition, when a medication is administered intravenously, its bioavailability is 100%.

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

Did you know?

Certain rare plants containing cyanide include apricot pits and a type of potato called cassava. Fortunately, only chronic or massive ingestion of any of these plants can lead to serious poisoning.

For a complete list of videos, visit our video library