The Rational Expectations Equilibrium Approach Has Influenced Modern Macroeconomic Thinking

question 17

Multiple Choice

The rational expectations equilibrium approach has influenced modern macroeconomic thinking since

• A)most economists now admit that wages are completely flexible and that markets always clear rapidly
• B)evidence has shown that recessions have never been policy-induced
• C)empirical studies have proven without a doubt that monetary policy is incapable of changing real output
• D)many modern economists agree that macroeconomic models need to be developed from basic microeconomic foundations
• E)none of the above

---

Definitions:

Budget Reports

Financial documents that detail the projected and actual income and expenditure over a particular period.

Risk Analysis

The process of identifying, assessing, and prioritizing risks to minimize, monitor, and control the impact of unfortunate events.

Goal Tracking

The process of monitoring progress towards achieving pre-defined objectives.

Project Schedules

Timelines that outline the start and end dates of tasks within a project, ensuring that work is completed in a timely manner.