The Main Criticism Leveled at the Rational Expectations School of Economic

question 240

Multiple Choice

The main criticism leveled at the rational expectations school of economic thought is that

• A)they assume too much influence due to monopoly power.
• B)they just go too far in ascribing rationality to the general population.
• C)the assumption that the velocity of circulation is predictable in the short run is not borne out by the facts.
• D)the assumption that labor union contracts create a rigid wage structure is unrealistic.

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Definitions:

Incarceration

The act of detaining someone in prison or another facility as a punishment for a crime.

PSD Area

A designated zone under the Prevention of Significant Deterioration program, aimed at controlling air pollution while allowing for economic growth.

Pollutants

Substances introduced into the environment that cause harm or discomfort to organisms, including chemicals, waste materials, and toxic gases.

Clean-up Cost Liability

The legal responsibility for the expenses associated with the removal and remediation of environmental pollution.