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.
d
Economics
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The federal budget deficit and the trade balance are often referred to as the
A) twin deficits. B) dueling depreciators. C) balance of payments. D) national debt.
Economics
How is an exchange rate depreciation likely to affect imports and exports in the short run and over a longer period of time?
What will be an ideal response?
Economics