A Key Implication of the Policy Irrelevance Proposition Is That

question 90

Multiple Choice

A key implication of the policy irrelevance proposition is that

• A) only fully anticipated policy actions can influence real Gross Domestic Product (GDP).
• B) only unanticipated policy actions can influence real Gross Domestic Product (GDP).
• C) the rational expectations hypothesis is incorrect.
• D) none of the above.

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Definitions:

Maslow's Hierarchy

A psychological theory proposed by Abraham Maslow; it posits that human needs are arranged in a hierarchy, with physiological needs at the base, ascending to safety, love and belonging, esteem, and self-actualization needs.

Conditional Positive Regard

An attitude of acceptance and love from others that is contingent upon behaving in a way that is approved by them, as opposed to unconditional positive regard.

Subception

A psychological term referring to the perception of stimuli below the threshold of consciousness.

Self-concepts

The sum of beliefs and feelings about oneself, including aspects of identity and self-esteem.