According to the rational expectations school,when monetary policy makers do exactly what is expected of them,their efforts to stimulate the economy will have no effect either on output or employment.

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The rational expectations school suggests that if monetary policy makers do exactly as expected, their efforts will have no effect on output or employment. This is because individuals and firms will anticipate and adjust their behavior accordingly, leading to no real change in the economy.

According to the Rational Expectations School,when Monetary Policy Makers Do