According to the Rational Expectations Equilibrium Approach

question 19

Multiple Choice

According to the rational expectations equilibrium approach

• A)announced changes in money supply have no effect on nominal GDP
• B)announced changes in money supply have no effect on prices
• C)unannounced changes in money supply temporarily affect the level of output and prices
• D)announced changes in fiscal policy have no effect on prices
• E)none of the above

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Definitions:

Numbers

Symbols or words used to represent quantities, allowing for counting, measuring, and calculating.

Exception

A case that does not follow the general rule or is different from what is usually found or expected.

Standards

Established norms or criteria that define the expected level of quality or performance.

Numbers

Refers to the numerical data or statistics that are used to support arguments, make calculations, or present findings.