According to the rational expectationists,
A) individuals and business firms quickly anticipate government policy.
B) even if there were a recession or substantial inflation,the best government policy would be to do nothing.
C) the dramatic oil price shocks of 1973 and 1979 created declines in aggregate supply,lowering the natural level of real GDP.
D) at best,government anti-recessionary policies would have no effect whatsoever.
E) All of the choices agree with the thought of rational expectationists.
Correct Answer:
Verified
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