Rational expectations analysis leads to the conclusion that policy changes will be effective in the short run.
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Q47: A shortcoming of the rational expectations hypothesis
Q48: When inflationary expectations are added to the
Q49: The 2007-2009 recession was not as severe
Q50: Adaptive expectations are driven by emotions.
Q51: The natural rate of unemployment is the
Q53: Most economists agree that expansionary fiscal policy
Q54: (Figure: Determining Long-Run and Short-Run Economic Shifts)
Q55: Unanticipated inflation results in
A) increasing real wages.
B)
Q56: When the expected rate of inflation increases,
Q57: One of the trigger points for the
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