If People Form Expectations in Accordance with the Rational Expectations

question 11

Multiple Choice

If people form expectations in accordance with the rational expectations hypothesis and they correctly anticipate policy actions, then the policies will:

• A) not impact output in either the short run or the long run.
• B) impact output in both the short run and the long run.
• C) impact output in the short run but have no effect in the long run.
• D) impact output in the long run but have no effect in the short run.

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Definitions:

Black Men

Male individuals of African descent, often addressing specific cultural, social, and economic experiences and issues within their communities.

Civil War

An internal conflict within a country between opposing factions or regions.

Anaconda Plan

A Civil War strategy proposed by Union General Winfield Scott to blockade Southern ports and take control of the Mississippi River, essentially squeezing the Confederacy economically.