According to the rational expectations theory, when the economy is at its long-run equilibrium output level, fully anticipated fiscal and monetary policies will affect the unemployment rate but not the inflation rate

The IBRD part of the World Bank is set up to lend to whom and for what types of projects?

What will be an ideal response?

Potential GDP is the output that would be produced if the economy was experiencing:

A.  No unemployment B.  Free markets and international trade C.  No inflation D.  Full employment