Which of the Following Is False

question 134

Multiple Choice

Which of the following is false?

• A)​If people can anticipate the plans of policy makers and alter their behavior quickly, their behavior could neutralize the intended impact of government action on real GDP.
• B)​The theory of rational expectations leads to optimistic conclusions regarding macroeconomic policy's ability to achieve its intended economic goals.
• C)​Rational expectation economists believe that wages and prices are flexible, and that workers and consumers incorporate the likely consequences of government policy changes quickly into their expectations.
• D)​Catching consumers and businessmen off-guard with macroeconomic policy changes gets harder the more you try to do it.

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Definitions:

Agency Decisions

Decisions made by an entity or individual acting on behalf of another entity or individual, usually within a legal or organizational context.

Common Law

A body of unwritten laws based on legal precedents established by the courts.

Coomer v. Kansas City Royals Baseball Corp.

A legal case that addressed the issue of spectator injuries at sporting events and the scope of liability for professional sports teams.

Hotdog Toss

A promotional or entertainment activity commonly seen at sports events where hotdogs are thrown or launched into the audience.