A conclusion of the theory of rational expectations is that the impact of discretionary fiscal policies designed to shift the aggregate demand curve will
A. result in no net change in aggregate demand.
B. be anticipated and compensated for, causing no significant change in real GDP or employment levels.
C. be completely opposite of the intended result.
D. be incorrectly evaluated by most economists.
B. be anticipated and compensated for, causing no significant change in real GDP or employment levels.
Economics
You might also like to view...
A single-price monopoly can sell 1 unit for $9.00. To sell 2 units, the price must be $8.50 per unit. The marginal revenue from selling the second unit is
A) $17.50. B) $17.00. C) $8.50. D) $8.00. E) $9.00.
Economics
Refer to Figure 13-1. Ceteris paribus, an increase in the price level would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
Economics