According to the rational expectation view, the government can change real output:
a. with appropriate, well-publicized fiscal and monetary policies
b. with appropriate, well-publicized fiscal and monetary policies in the short run, but not in the long run.
c. only by making unexpected changes in aggregate demand.
d. without ever affecting the price level.
c
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At which time is the opportunity cost likely to be higher to go to war, during a recession or during an economic boom? Explain your answer fully
What will be an ideal response?
Summarize how the law of demand explains the effects of price on the quantity demanded
What will be an ideal response?
In a sense, Keynesian economics is the foundation of all macroeconomics.
Answer the following statement true (T) or false (F)
Better ideas cause the economy's production function to:
A) rotate upward. B) rotate downward. C) shift upward. D) shift downward.