Which view of the macro economy suggests that the speed of adjustment for self-correction would be very quick?
A) Monetarism
B) Mainstream economics
C) Supply-side economics
D) Rational expectations theory

Question

Quizplus · Accepted Answer

Rational expectations theory suggests that economic agents have rational expectations and adjust their behavior quickly in response to changes in economic conditions. As a result, the speed of adjustment for self-correction would be very quick according to this view.

Which View of the Macro Economy Suggests That the Speed