Rational expectations are the theory according to which people optimally use all the information they have, including information about government policies, when forecasting the future.
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Q32: The short-run aggregate supply curve is upward
Q33: According to the Phillips curve, in the
Q34: An example of indexing is a "cost
Q35: There is no long-run trade-off between inflation
Q36: One explanation for the increase in the
Q38: Indexing seeks to reduce the social costs
Q39: Inflation targeting requires monetary policymakers to rely
Q40: If expectations are rational, inflation can be
Q41: If economic fluctuations originate on the supply
Q42: Restricting demand will lower inflation but
A)aggravate the
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