According to the rational expectations equilibrium approach
A) announced changes in money supply have no effect on nominal GDP
B) announced changes in money supply have no effect on prices
C) unannounced changes in money supply temporarily affect the level of output and prices
D) announced changes in fiscal policy have no effect on prices
E) none of the above
Correct Answer:
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Q5: The rational expectations approach
A) insists that all available
Q6: The rational expectations approach assumes that
A)people never
Q7: The rational expectations equilibrium approach emphasizes
A)the microeconomic
Q8: According to the Lucas' rational expectations approach,
A)people
Q9: When individuals form expectations using information efficiently
Q11: The Lucas rational expectations model and the
Q12: Even if people have rational expectations,
A)unannounced changes
Q13: In the Lucas model, monetary policy is
Q14: The rational expectations model asserts that the
Q15: According to Lucas' rational expectations approach, what
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