The Proponents of Adaptive Expectations Believe That

question 86

Multiple Choice

The proponents of adaptive expectations believe that:

• A)there will be a substantial time lag before people anticipate the effects of a shift to a more expansionary macro-policy.
• B)macro-policies that stimulate demand and place upward pressure on the general level of prices will temporarily increase output and employment.
• C)discretionary changes in macro-policy can be made in a manner that will reduce the economic ups and downs of a market economy.
• D)all of these are true.

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Definitions:

Intellectual Disability

A condition characterized by significant limitations in both intellectual functioning and in adaptive behavior, which covers many everyday social and practical skills.

Savant Syndrome

A rare condition in which someone with significant mental disabilities demonstrates certain abilities far in excess of average.

Fluid Intelligence

Our ability to reason speedily and abstractly; tends to decrease with age, especially during late adulthood.

Cross-Sectional

A research method that involves observations of all of a population, or a representative subset, at one specific point in time.