The hypothesis stating that people combine the effects of past policy changes on important economic variables with their own judgment about the future effects of future and current policy changes is known as
A) policy irrelevance hypothesis.
B) rational expectations hypothesis.
C) life cycle hypothesis.
D) real business cycle hypothesis.
Correct Answer:
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Q116: The downward slope of the Phillips curve
Q117: According to the Phillips curve
A) there is
Q119: Q121: According to the rational expectations hypothesis, an Q122: What is the Phillips curve? What does Q127: Based on the work of economist A.W. Q128: The Phillips curve shows Q129: Suppose the economy has been experiencing zero Q140: A trade-off between unemployment and inflation is Q158: If you accept the rational expectations hypothesis
A)a positive relationship in
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