Multiple Choice
Rational expectations theory suggests that short-run stabilization policy
A) is best achieved with monetary policy.
B) is best achieved with fiscal policy.
C) is equally easy to achieve with monetary or fiscal policy.
D) is not effective in stabilizing the economy.
Correct Answer:
Verified
Related Questions
Q139: The Phillips curve shows
A) the relationship between
Q140: A trade-off between unemployment and inflation is
Q141: In the short run, an unanticipated increase
Q142: In the absence of rational expectations, an
Q143: The hypothesis that people combine the effects
Q145: According to the policy irrelevance proposition
A) monetary
Q146: In the aggregate supply-aggregate demand model, if
