Rational expectations theory would imply that the graphical relationship between unemployment and inflation indicated by the Phillips curve is ____ in the short-run.
A) vertical
B) positively sloped
C) negatively sloped
D) horizontal
Correct Answer:
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Q99: Rational expectations involve:
A)forecasts that are technically correct.
B)forecasts
Q100: The expectation of a lower inflation rate
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Q107: Exhibit 19-1 Q108: If a decrease in the growth rate Q109: If the shifts in AD that will
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