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:

Impediments

Obstacles or barriers that hinder progress or the achievement of objectives.

Organizational Setting

The context within which an organization operates, including its culture, structure, and external environment.

Behavioral View

An perspective that focuses on understanding and analyzing human behavior based on observable actions and reactions.

Creativity

The ability to produce original and valuable ideas or solutions.