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

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Definitions:

Sample Size

The number of participants, observations, or data points collected in a study, important for ensuring the statistical validity and reliability of the research findings.

Larger Sample Size

A methodological strategy in research that involves increasing the number of participants to enhance the reliability and validity of the study's outcomes.

Cluster Sampling

A method of sampling in which the population is segmented into different groups, and from these groups, a few are randomly chosen for analysis.

Quota Sampling

A sampling method where participants are chosen to form a sample that represents certain characteristics of a population.