If rational expectations hold, aggregate demand policy actions only affect output if
a. they are predictable.
b. they are unpredictable.
c. they are systematic.
d. they are permanent.
e. both b and d.
B
You might also like to view...
Doctors have ________ incentive to control their costs when consumers ________ for a visit to the doctor's office
A) more; have a third-party payer that pays B) less; pay entirely out of pocket C) less; only pay a deductible D) more; only pay a deductible
An adjustable-rate mortgage (ARM) is a kind of loan used to purchase a home and for which the interest rate varies or is indexed against the rate of inflation.
Select whether the statement is true or false. A. True B. False
Which of the following would likely cause the greatest deadweight loss?
a. a tax on cigarettes b. a tax on salt c. a tax on cruise line tickets d. a tax on gasoline
The amount of inflation caused by expansionary monetary policy depends on the slope of the aggregate supply curve.
Answer the following statement true (T) or false (F)