The Rational Expectations Argument Relies on

question 115

Multiple Choice

The rational expectations argument relies on

• A) wages and prices being sticky so that changes in expectations about future economic activity and the price level will prevent the short-run aggregate supply curve from shifting quickly to restore long-run equilibrium.
• B) the ability of monetary policy authorities to identify and respond quickly to close output gaps and restore the economy to its long-run equilibrium.
• C) wages and prices being sufficiently flexible so that the change in expectations about future economic activity and the price level will allow the short-run aggregate supply curve to shift quickly to restore long-run equilibrium.
• D) wages and prices being sufficiently flexible so that changes in expectations about future economic activity and the price level will allow the aggregate demand curve to shift quickly to restore long-run equilibrium.

---

Definitions:

Superior Talent

Refers to individuals possessing exceptionally higher skills or abilities in a specific domain compared to their peers.

Organizational Context

The environment or setting within which an organization operates, including its policies, cultural norms, and management systems.

Team Reputation

The collective esteem and recognition a team holds, based on its past achievements, behavior, and the perceived quality of its work or performance.

Supportive Organizational Context

An environment within an organization that promotes positive behaviors, growth, and performance through support, resources, and a positive culture.