According to Adaptive Expectations Theory, Expansionary Monetary and Fiscal Policies

question 32

Multiple Choice

According to adaptive expectations theory, expansionary monetary and fiscal policies to reduce the unemployment rate are:

• A) useless in the long run.
• B) useless in the short run.
• C) ineffective on the price level.
• D) successful at achieving the desired outcomes.

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Definitions:

Self-efficacy

An individual's belief in their own capabilities to achieve outcomes, influencing how goals, tasks, and challenges are approached.

Cues to Action

Triggers or signals that motivate individuals to take action or change their behavior, often discussed in the context of health promotion and behavior change theories.

Healthy Behaviors

Actions or habits by individuals that contribute to maintaining or improving their health.

Social Support

The assistance provided by others, including emotional, informational, and practical help, which is critical for psychological well-being and stress management.