The Rational Expectations Approach Differs from the Perfect Foresight Approach

question 48

Multiple Choice

The rational expectations approach differs from the perfect foresight approach, since the rational expectations approach assumes that

• A)the monetary policy multiplier is non-zero in the long run, but only if monetary policy is anticipated
• B)the monetary policy multiplier is non-zero in the long run if monetary policy is unanticipated
• C)the monetary policy multiplier is non-zero in the short run if monetary policy is unanticipated
• D)people make systematic errors
• E)after a disturbance, GDP never returns to trend

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Definitions:

Customer Measures

Metrics or indicators used to evaluate the satisfaction, loyalty, retention, and acquisition of customers within a business.

Internal Business Process Measures

Metrics used to evaluate and improve the efficiency and effectiveness of a company's internal operations.

Learning and Growth Measures

are metrics used to evaluate the effectiveness of strategies aimed at creating long-term value through employee development and organizational improvement.

Balanced Scorecard

A strategic planning and management system used to align business activities with the vision and strategy of the organization by monitoring performance against strategic goals.