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Author Question: Those who believe in the rational expectations hypothesis advocate (Read 69 times)

littleanan

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Question 1

According to the rational expectations hypothesis, unemployment


◦ does not exist in the short run.
◦ may exist, and when it does, it stays for a long period of time.
◦ may exist, and if it does, it will be temporary.
◦ only exists in the long run.

Question 2

Those who believe in the rational expectations hypothesis advocate


◦ active fiscal policy during recessions.
◦ active monetary policy during recessions.
◦ active monetary policy during inflationary periods only.
◦ no policy intervention.


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Marked as best answer by littleanan on Apr 19, 2019

wfdfwc23

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littleanan

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wfdfwc23

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