A key implication of the policy irrelevance proposition is that
A) only unanticipated policy actions can influence real Gross Domestic Product (GDP).
B) only fully anticipated policy actions can influence real Gross Domestic Product (GDP).
C) the rational expectations hypothesis is incorrect.
D) none of the above.
A
Economics
You might also like to view...
When a country removes trade barriers and imports appliances and exports engineering services,
a. its growth slows. b. its productivity decreases. c. it is essentially transforming engineering services into appliances. d. its economic well-being decreases while that of the country that sells appliances increases.
Economics
The central idea of supply-side tax cuts is that certain types of tax cuts will increase
A. aggregate demand. B. aggregate supply. C. the supply of imports. D. the supply of money.
Economics