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

Related Mcqs:

According to the classical economists the economy ?

A. requires fine tuning to reach full employment B. can never deviate from full employment C. will never be at full employment D. is self-correcting....

Keynesian economics became popular because it was able to explain ?

A. stagflation in the late 1970s B. demand-pull inflation in the 1960s C. low growth rates in the 1950s D. The prolonged existence of high unemployment during the Great depression...

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

A. laissez-faire. B. monetary policy C. fine tuning D. automatic stablisers...

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....

The quantity theory of money implies that a given percentage change in the money supply will cause ?

A. an equal percentage change in nominal DGP. B. an equal percentage change in real GDP C. a larger percentage change in nominal GDP D. a smaller percentage change in nominal...