Rational expectations theory implies that the more completely the effects of policy makers are foreseen, the smaller their short run effects on real output and unemployment, and the greater their short run effects on the price level

Which of the following is not an example of an incomes policy?

a. Presidential jawboning. b. Unemployment insurance. c. Wage and price guidelines. d. Wage and price controls.

Which of the following factors can shift the AD curve?

A) net exports B) government purchases C) the money supply D) b and c E) a, b, and c