According to the rational expectations approach , if policy makers consistently stimulate aggregate demand when real output falls below the economy's potential output, then people will not be able to anticipate the effects of this policy on the price level, unemployment, and the real output level
a. True
b. False
Indicate whether the statement is true or false
False
Economics
You might also like to view...
Explain the economic idea that "people respond to incentives."
What will be an ideal response?
Economics
Using only marginal revenue and marginal cost, we can determine whether a firm is incurring a profit or a loss.
Answer the following statement true (T) or false (F)
Economics
A person whose skills do not match available job openings is considered frictionally unemployed
a. True b. False Indicate whether the statement is true or false
Economics
To be effective, pure bundling requires firms to be able to separate consumers into separate markets
Indicate whether the statement is true or false
Economics