According to the rational expectations hypothesis, monetary policy can have effects on such variables as real Gross Domestic Product (GDP) in the short run
A. only when the policy is anticipated.
B. only when the policy is unsystematic and unanticipated.
C. when the central bank implements policy actions as anticipated.
D. regardless of whether the policy is anticipated or unanticipated.
Answer: B
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Rank the following goods from least to most elastic: gasoline, Unocal gasoline, gasoline at Murph's Unocal Station
A) Gasoline, Unocal gasoline, gasoline at Murph's Unocal Station B) Gasoline, gasoline at Murph's Unocal Station, Unocal gasoline C) Gasoline at Murph's Unocal Station, Unocal gasoline, gasoline D) Unocal gasoline, gasoline at Murph's Unocal Station, gasoline E) Unocal gasoline, gasoline, gasoline at Murph's Unocal Station
Traffic congestion is an example of a ________
A) positive externality B) negative externality C) pecuniary externality D) free-rider problem
Refer to Table 4-8. If a minimum wage of $10.00 an hour is mandated, what is the quantity of labor demanded?
A) 390,000 B) 370,000 C) 350,000 D) 40,000
Using the information in Situation 20-1, the equilibrium level of aggregate output is
A) $900 B) $8,000 C) $9,000 D) $10,000