In the Rational Expectations View

question 66

Multiple Choice

In the rational expectations view,

• A)wages are flexible downward but prices are inflexible downward.
• B)prices are flexible downward but wages are inflexible downward.
• C)discretionary policy tends to be countercyclical.
• D)discretionary policy tends to be ineffective.

---

Definitions:

Adults Not in the Labor Force

Individuals of working age who are neither employed nor actively seeking employment.

Labor Force

The total number of people employed or seeking employment in a country or region.

Labor Data for Tajnia

Statistical information related to the workforce of Tajnia, including employment rates, labor productivity, wages, and other employment-related metrics.

Adults Employed

The segment of the labor force aged 18 and over that is actively engaged in paid work.