What Did Proponents of Rational Expectations Argue About the Sacrifice

question 190

Multiple Choice

What did proponents of rational expectations argue about the sacrifice ratio and why?

• A) The sacrifice ratio would be high because it was rational for people not to immediately change their expectations.
• B) The sacrifice ratio would be high because people might adjust their expectations quickly if they found anti-inflation policy credible.
• C) The sacrifice ratio could be low because it was rational for people not to immediately change their expectations.
• D) The sacrifice ratio could be low because people might adjust their expectations quickly if they found anti-inflation policy credible.

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Definitions:

Reciprocal Determinism

A concept in psychology proposed by Albert Bandura that suggests individual behavior, environment, and cognition all interact and influence each other.

Ideal Self

represents an individual's conception of how they would like to be, often serving as a standard for self-evaluation.

Real Self

An individual's authentic self, as opposed to the roles or identities assumed in response to societal expectations.

Unconditional Positive Regard

An attitude of total acceptance and support toward another person regardless of what they say or do, often used in the context of client-centered therapy.