Which of the Following Is an Implication of Rational Expectations

question 11

Multiple Choice

Which of the following is an implication of rational expectations theory?

• A) Macroeconometric models based on past behaviour will not be very useful in formulating policy.
• B) Business cycles almost always result from a shift in aggregate demand.
• C) Wages and prices are set almost entirely at random, so it is pointless to try to model their behaviour.
• D) Deviations of output from the natural rate are likely to be serious and long- lived.
• E) The economy is like a complex machine that needs to be optimally controlled with the proper policy.

Know how to properly close routine replies or positive messages, including specifying any follow-up actions.

Grasp the importance of asking for permissions in professional contexts, such as using someone as a job reference or requesting recommendation letters.

Understand the effectiveness of direct and indirect communication approaches in business messages.

Recognize when to employ positive messaging techniques.

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Definitions:

Sample

A subset of individuals or items selected from a larger population for the purpose of statistical analysis.

Inferential Statistics

A branch of statistics that allows us to make predictions or inferences about a population based on a sample of data.

Observed Difference

The noticeable discrepancy or variation between two or more factors or results that can be empirically measured.

Social Desirability Bias

Social desirability bias is the tendency of respondents to answer questions in a manner that will be viewed favorably by others, often leading to misrepresentation of their true thoughts or feelings.