Brandon, an economist, is a believer of the rational expectations school. According to him, which of the following is likely to affect the levels of output and employment in an economy?
a. An expansionary monetary policy, if it is fully anticipated
b. A recessionary monetary policy, if it is fully anticipated
c. A monetary policy that is unanticipated
d. A fiscal policy that is anticipated
e. The Fed's announcement of no change in monetary policy
c
You might also like to view...
The introduction of refrigerators into American homes:
A) decreased the magnitude of the short run own price elasticity of demand for raw meat. B) did not affect the short run own price elasticity of demand for raw meat. C) increased the magnitude of the short run own price elasticity of demand for raw meat. D) decreased the magnitude of the short run own price elasticity of demand for smoked meats.
If average product is decreasing, then marginal product
a. Must be increasing b. Must be greater than average product c. Must be less than average product d. None of the above