Which of the following would be evidence against rational expectations?
A) unpredictable changes in policy have real effects.
B) new information leads to changes in output.
C) the public never make mistakes with respect to price level predictions.
D) changes in stock prices change much more often than new information becomes available.
Correct Answer:
Verified
Q31: According to Thomas Sargent and other new
Q32: In a move to increase its openness,the
Q33: One similarity between the policy recommendations of
Q34: New classical economists like Robert Lucas argue
Q35: In an economy with higher and more
Q37: Which of the following statements is (are)correct?
Q38: Regarding fiscal policy,the new classical economists
A)are in
Q39: According to the new classical model,the output
Q40: The theory of rational expectations states that
A)expected
Q41: In the early 1980s,the disinflation in the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents