In the table shown above, the total cost of the market basket in 2015 was

Rational expectation theory implies that accurately anticipated change in aggregate demand: a. will increase RGDP in the short run

b. will affect RGDP and inflation only in the long run. c. may affect RGDP but not nominal GDP in the short run. d. will do none of the above.

As a result of the existence of automatic stabilizers

A. the government budget deficit will always increase during a period of economic recession. B. the economy will always tend to move toward a full-employment equilibrium. C. the government budget deficit will always increase during a period of economic expansion. D. the business cycle will no longer exist. E. None of the choices are correct.