According to Rational Expectations Theory, Observed Instability in the Private

question 173

Multiple Choice

According to rational expectations theory, observed instability in the private economy would most likely be due to

• A) changes in aggregate supply.
• B) inappropriate monetary policy.
• C) the instability of investment spending in the economy.
• D) unanticipated aggregate demand and aggregate supply shocks in the short run.

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Definitions:

Situational Control

The ability to adapt leadership style and strategies according to the specific circumstances, context, or environment to effectively manage and influence outcomes.

Fiedler's Contingency Theory

A leadership theory proposing that effective leadership depends on a match between the leader's style of interacting with subordinates and the degree of control and influence in the situation.

Task Structure

The degree to which job and task roles are defined, organized, and executed within an organization, affecting clarity and efficiency.

Delegating Style

A management approach where authority and tasks are transferred to lower-level employees, promoting responsibility and decision-making at all levels.