The belief that the government can do absolutely nothing in either the short run or the long run to reduce the unemployment rate, because people will anticipate the government's actions, is held by the:
a. rational expectations school.
b. neo-Keynesian school.
c. classical school.
d. supply-side school.
e. Keynesian school.
a
You might also like to view...
The "zero sum" society is
A) a society that has reached its limit in population growth and has placed quotas on its birth rate. B) a society where the rate of growth of GDP minus the inflation rate equals zero. C) a society in which the fluctuations of GDP around the natural level of output sum to zero. D) a society with no productivity growth in which any additional good enjoyed by one person requires that something be taken away from someone else.
Imagine that Odyssey National is a brand new bank, and that its required reserve ratio is 10 percent. If it accepts a $1,000 deposit, then Odyssey National can increase the money supply by:
a. $900. b. $910. c. $1,000. d. $9,000. e. $10,000.