What is the difference between the Keynesian and rational expectations theories concerning the success of stabilization policy?
The Keynesians believe that government can affect real GDP and employment. The rational expectationists believe that government stabilization policies have no effect on real GDP or employment. The only effect is on the price level.
Economics
You might also like to view...
A baseball player who is currently batting .350 will increase his batting average on a day that he goes _____ at the plate
a. 1 for 4. b. 1 for 3. c. 2 for 5. d. 2 for 6.
Economics
Under bilateral? monopoly, the wage rate is
A. indeterminate. B. higher than the competitive wage rate. C. equal to the competitive wage rate. D. lower than the competitive wage rate.
Economics