Under the Rational Expectations Hypothesis, If Wages Adjust Rapidly to New

question 276

Multiple Choice

Under the rational expectations hypothesis, if wages adjust rapidly to new information about intended policy actions, the only time that changes in government policies have real effects is when

• A) the changes are unanticipated.
• B) the changes involve fiscal policy.
• C) the changes involve monetary policy.
• D) the changes affect aggregate demand.

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Construction Industry

The business sector that focuses on the construction, maintenance, and renovation of buildings, infrastructure, and other real estate projects.

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The process of receiving or giving systematic instruction, especially at a school or university.

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Unemployment caused by a mismatch between the skills of job-seekers and the needs of employers, often due to technological changes or shifts in the economy.

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Customer Service is the assistance and advice provided by a company to those people who buy or use its products or services.