The government increase government spending to try to reduce unemployment This is an example of ?

Related Mcqs:

Rapid increase in the price level during periods of recession of high unemployment are known as ?

A. slump B. inflation C. stagflation D. stagnation...

The rational-expectation hypothesis suggests that the forecasts that people make concerning future inflation rates ?

A. consistently overestimate the actual rate of inflation in the future. B. are always correct C. consistently underestimate the actual rate of inflation in the future D. are correct on average, but are subject to errors that are distributed randomly...

The persistence of a phenomenon such as unemployment, even then its causes have been removed is called ?

A. the fallacy of composition B. negative entropy. C. hysteresis. D. ceteris paribus...

The hypothesis that people know the true model of the economy and that they use this model to form their expectations of the future is the ?

A. Rational-expectations hypothesis B. Passive-expectations hypothesis C. adaptive expectations hypothesis D. lagged-expectations hypothesis....

People are said to have rational expectations if they ?

A. assume that this year’s inflation rate will be the same as last year’s inflation rate B. merely guess at the inflation rate. C. assume that this year’s inflation rate will be equal to the average inflation rate over the past 10 years D. Use all available information in forming their expectations....