Proponents of Rational Expectations Theory Argue That When Government Policies

question 47

True/False

Proponents of rational expectations theory argue that when government policies change, people adjust their expectations accordingly, and that failure to include that fact once led to estimates of the sacrifice ratio that were unreliable guides to policy.

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Definitions:

National Labor Relations Act

A 1935 U.S. law that protects the rights of employees and employers, encourages collective bargaining, and curtails certain private sector labor and management practices.

Enforcement Arm

Refers to the means or mechanism by which laws, regulations, or policies are implemented and ensured compliance with, often involving legal or coercive action.

National Labor Relations Board

A U.S. federal agency tasked with enforcing labor laws in relation to collective bargaining and unfair labor practices.

Federal Writers Project

A New Deal program established in 1935 to provide employment for historians, teachers, writers, librarians, and other white-collar workers during the Great Depression.