Which of the Following Statements Is (Are)correct

question 14

Multiple Choice

Which of the following statements is (are) correct?

• A)Even the earliest political business cycle and partisan models assumed that expectations were rational.
• B)The partisan model of fiscal policy cannot be modified to be consistent with rational expectations.
• C)the myopic,or short-sighted behavior of voters is inconsistent with rational expectations.
• D)The earliest political business cycle models assumed that expectations were always rational,whereas the partisan model assumed that expectations were sometimes irrational.

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Definitions:

Equilibrium

A situation in a market where the quantity demanded equals the quantity supplied, leading to no net change in price.

Quantity Supplied

The total amount of a good or service that producers are willing to sell at a given price level.

Compact Disks

Optical storage media used to store data, including music and software, now largely superseded by digital formats.

Substitute

A product or service that can be used in place of another to satisfy consumer demand.