According to the "Rational Expectations" School of Thought in Macroeconomics,the

question 202

Multiple Choice

According to the "rational expectations" school of thought in macroeconomics,the short-run Phillips curve is ________ in face of unanticipated changes in monetary policy.

• A)negatively sloped
• B)positively sloped
• C)vertical
• D)horizontal

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Definitions:

Infant Industry

The infant industry argument supports protecting emerging domestic industries from international competition until they become competitive internationally.

Technological Efficiency

A state of production where a business cannot produce more of one good without lowering the production level of another good, given current technology.

Import Protection

Measures by a government to restrict foreign imports to protect domestic industries.

Import Quotas

Restrictions set by a country on the amount or volume of goods that can be imported into the country over a set period of time.