If Expectations Were Always Met, Then fiRms Would Never Contribute

question 16

True/False

If expectations were always met, then firms would never contribute to any of the short-run
fluctuations in employment and output that are observed in real-world economies.

---

Definitions:

Democratic Politics

A political system in which power is practiced directly by the people or through elected representatives, characterized by free and fair elections, rule of law, and protection of rights.

Market Economy

An economy in which the production and distribution of goods and services are determined by supply and demand, rather than state intervention.

Communist Party

A political organization advocating for the principles of communism, where property and resources are collectively owned.

Consumer Prices

The prices that consumers pay for goods and services, which reflect the cost of living in an economy.