The rational expectations hypothesis suggests that if wages and prices are flexible,
A) unanticipated monetary policy actions can shift the long-run aggregate supply curve but cannot shift the aggregate demand curve.
B) anticipated monetary policy actions can affect nominal variables, but not real variables.
C) unanticipated monetary policy actions can affect real variables, but not nominal variables.
D) growth in the money supply can alter real variables only if the growth is anticipated.
B
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The person hired by a corporation's board of directors to ________ is known as the chief executive officer
A) chair the board of directors B) run the day-to-day operations of the corporation C) hire additional members for the board of directors D) audit the financial records of the corporation
Uber has come under criticism for its surge pricing because consumers see it as
A) equally fair for firms to raise prices after an increase in costs and as a result of an increase in demand. B) completely unfair for firms to raise prices after an increase in costs or as a result of an increase in demand. C) more fair for firms to raise prices after an increase in costs than as a result of an increase in demand. D) more fair for firms to raise prices after an increase in demand than as a result of an increase in costs.
All price indexes contain certain distortions or biases that reduce their effectiveness as measures of inflation. Describe these distortions and how they affect price indexes
Suppose a firm's technology is represented by the function Q = F(L, K) = 5L0.25K0.75. Does this firm experience economies of scale, diseconomies of scale or neither?
What will be an ideal response?