A conclusion of the theory of rational expectations is that the impact of discretionary fiscal policies designed to shift the aggregate demand curve will
A) result in no net change in aggregate demand.
B) be anticipated and compensated for,causing no significant change in real GDP or employment levels.
C) be completely opposite of the intended result.
D) be incorrectly evaluated by most economists.
E) cause potential GDP to increasE.
Correct Answer:
Verified
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