Adding the Assumption of Pure Competition and Complete Flexibility of All

question 58

Multiple Choice

Adding the assumption of pure competition and complete flexibility of all prices and wages to the rational expectations hypothesis yields a theory that provides support for

• A)passive policy making.
• B)active policy making.
• C)discretionary policy making.
• D)unemployment reducing policy making.

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Definitions:

Group Membership

The state or condition of being a part of a collective group, where members often share common interests, goals, or characteristics.

Negative Attitude

A general disposition of being discontent or pessimistic towards people, situations, or life in general, often resulting in adverse outcomes.

Older People

Persons of advanced age, often considered to be those who have lived beyond the average lifespan of human beings, and who experience unique social, economic, and health-related challenges.

Ethnic Group

A community or population made up of people who share a common cultural background or descent.