According to the Rational Expectations Model, When Does Active Policy

question 100

Multiple Choice

According to the rational expectations model, when does active policy have an impact on aggregate output?  

• A) only when active policy is expansionary 
• B) only when active policy is contractionary 
• C) only when active policy is unannounced 
• D) only when the economy has a contractionary gap

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Definitions:

Good Person Philosophy

A belief system that emphasizes the inherent goodness of individuals and the importance of moral and ethical behavior in personal development.

Right Choice

Making a decision or selection that is considered correct or most fitting based on circumstances or objectives.

Situational Ethics

An ethical theory that posits the morality of an action is determined by the context or situation, rather than by applying universal laws.

Immanuel Kant

An 18th-century German philosopher, known for his work in epistemology, ethics, and aesthetics, emphasizing duty, rationality, and the categorical imperative.