The rational expectations hypothesis suggests that
A) unanticipated fiscal policy actions are more powerful than monetary policy actions.
B) fiscal policy actions only work when accompanied by changes in the money supply.
C) anticipated monetary policy actions are more powerful than fiscal policy actions.
D) anticipated fiscal and monetary policy actions are not likely to achieve their stated aims.
D
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As GDP decreases during recessions, unemployment generally increases. Unemployment is therefore said to be procyclical
Indicate whether the statement is true or false
Which of the following best describes the difference between an objective concept and a subjective concept?
a. A subjective concept is a fact based on observation that is not subject to personal opinion, while an objective concept is based on personal preferences and value judgments. b. An objective concept is a fact based on observation that is not subject to personal opinion, while a subjective concept is based on personal preferences and value judgments. c. A subjective concept relates to issues in microeconomics, while an objective concept relates to issues in macroeconomics. d. An objective concept can only be illustrated in words, while a subjective concept can usually be illustrated with a graph.