According to the Rational Expectations School,_____

question 136

Multiple Choice

According to the rational expectations school,_____.

• A)on average people have very little idea of what to expect from government policy makers
• B)people form expectations by focusing only on the private sector
• C)changes in the expected price level shift the aggregate demand curve
• D)people do not consider likely government policies when forming expectations,choosing to remain rationally ignorant
• E)people form expectations,in part,by considering the probable future actions of government policy makers

---

Definitions:

Professional Status

Recognition or standing of an individual based on their occupation, qualifications, and experience in a professional field.

Recognized Profession

Refers to occupations that are formally acknowledged and regulated by legal or professional bodies.

Emerging Profession

A new or developing field of work that is becoming recognized as a specialized area of practice or expertise.

Insurance Agents

Professionals who sell, solicit, and negotiate insurance policies on behalf of insurers, providing advice to buyers and managing the policy.