Rational Expectations Theory Implies That The

question 12

Multiple Choice

Rational expectations theory implies that the:

• A) aggregate demand curve is vertical.
• B) long-run aggregate supply curve is vertical.
• C) long-run aggregate supply curve is horizontal.
• D) long-run aggregate supply curve is quite flat.

---

Definitions:

College Tuition

The fee that colleges and universities charge for instruction and attendance.

Low-Interest Home Loans

Mortgage loans offered to borrowers at rates lower than the typical market interest, often supported by government programs to encourage home ownership.

Mathematics

The abstract science of quantity, structure, space, and change, utilizing symbols and logical reasoning.

National Defense Education Act

Enacted in 1958, this law provided funding for education in the U.S., particularly in science and engineering, in response to the Soviet Union's launch of Sputnik.