According to the Rational Expectations Hypothesis, the Occurrence of Unemployment

question 240

Multiple Choice

According to the rational expectations hypothesis, the occurrence of unemployment is due to

• A) imperfect information.
• B) unpredictable shocks.
• C) downwardly rigid wages.
• D) a deficient level of aggregate demand.

---

Definitions:

Service of Process

The procedure by which a party to a legal action gives an appropriate notice of initial legal action to another party (such as a defendant), court, or administrative body.

Summons

A legal document issued by a court and addressed to a defendant that notifies him or her of the lawsuit and how and when to respond to the complaint. A summons may be used in both civil and criminal proceedings.

Complaint

A formal written document that begins a civil lawsuit; contains the plaintiff’s list of allegations against the defendant along with the damages the plaintiff seeks.

Defendant

An entity, whether a person, corporation, or institution, facing legal action in a court.