A Vocal Minority of Economists, Believers in the Theory of Rational

question 160

Multiple Choice

A vocal minority of economists, believers in the theory of rational expectations, insist that

• A)the Phillips curve is downward sloping even in the short run.
• B)the Phillips curve is vertical even in the short run.
• C)a trade-off exists between inflation and unemployment even in the long run.
• D)expansionary fiscal and monetary policy can reduce unemployment without creating inflation.

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Definitions:

Exploitation

The act of unfairly using someone or something for one's own advantage, often economically or socially.

Exploration

Refers to the act of investigating, studying, or examining unknown areas and ideas to gain new knowledge or insight.

Implementation

The act of putting a decision or plan into effect; executing or enacting a procedure or program.

Social Comparison

The process of evaluating oneself by comparing with others, often to assess one's abilities, status, or attitudes in relation to those of others.