The Idea of Rational Expectations Suggests That

question 64

Multiple Choice

The idea of rational expectations suggests that

• A)Only economic policies that people can anticipate are effective.
• B)It is unrealistic for Congress to balance the federal budget during a recession.
• C)Discretionary policies and fine-tuning can move the economy to full employment.
• D)Economic policies are ineffective if the policies are anticipated.

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Definitions:

Physically Aggregating

The process of collecting and assembling goods from various sources to streamline distribution or processing.

Carrier's Decisions

The choices made by transportation companies regarding route selection, pricing, service levels, and capacity management.

Market

An economic place or environment where buyers and sellers come together to exchange goods, services, or information.

Responsiveness

The ability of a company or system to quickly react to changes in demand, customer needs, or market conditions.