If Expectations Are Formed Rationally,wages and Prices Are Not Completely

question 138

Multiple Choice

If expectations are formed rationally,wages and prices are not completely flexible in the short run,and policy is correctly anticipated,increases in aggregate demand will stimulate the economy to higher levels of Real GDP and lower levels of unemployment in

• A) the short run or the long run.
• B) neither the short run nor the long run.
• C) the short run,but not in the long run.
• D) the long run,but in not the short run.

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Definitions:

Efficacy

The ability to produce a desired or intended result, often used in the context of therapeutic treatments' effectiveness.

Baseline Measures

Initial data collected before interventions begin to track progress or changes in behavior, abilities, or attitudes over time.

Target Behaviors

Specific behaviors identified for change or modification in a therapeutic or behavioral intervention.

Behavior Therapies

Refers to a spectrum of therapies that aim to modify dysfunctional behaviors through techniques like desensitization, reinforcement, and cognitive restructuring, to improve psychological well-being.