An economic policy has a decent chance of working as intended,if ________.
A) the policy causes no change in expectations
B) if mistaken expectations are not very costly
C) the rationale behind the policy is well-understood by the public
D) expectations are formed in the same way by both the public and the policymakers
Correct Answer:
Verified
Q8: Economists use _ to forecast economic activity
Q9: The notion that expectations will be identical
Q10: Both adaptive expectations and rational expectations are
Q11: Adaptive expectations are formed _.
A)from experience
B)from best
Q12: Assume that prices have risen in a
Q14: Suppose you need an estimate of future
Q15: Robert Lucas spurred the rational expectations revolution
Q16: _ rational expectations,_.
A)Most people have always formed;but
Q17: Under what circumstances might it be "rational"
Q18: The danger in using data to estimate
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