According to the Rational Expectationists

question 192

Multiple Choice

According to the rational expectationists,

• A)individuals and business firms quickly anticipate government policy.
• B)even if there were a recession or substantial inflation,the best government policy would be to do nothing.
• C)the dramatic oil price shocks of 1973 and 1979 created declines in aggregate supply,lowering the natural level of real GDP.
• D)at best,government anti-recessionary policies would have no effect whatsoever.
• E)All of the choices agree with the thought of rational expectationists.

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Definitions:

Kyoto Protocol

An international agreement linked to the United Nations Framework Convention on Climate Change, which commits its parties to reduce greenhouse gas emissions, based on the premise that global warming exists and human-made CO2 emissions have caused it.

Species Diversity

The variety and variability of species within a particular region, contributing to the health and resilience of ecosystems.

Ecosystem Diversity

The variety of different habitats, living communities, and ecological processes in the natural world.

Biodiversity

The variety and variability of life on Earth, encompassing the diversity of species, ecosystems, and genetic variations.