Economists of the Rational Expectations School

question 133

Multiple Choice

Economists of the rational expectations school:

• A)have no confidence in the ability of workers and firms to observe and react to economic events.
• B)believe workers and firms behave the same regardless of what the Fed does.
• C)have great faith in the ability of monetary policy makers to maintain a full employment economy with stable prices.
• D)believe that effective monetary policy can shift the potential level of output to the right.
• E)believe workers and firms make decisions based on what they think monetary policy will be in the future.

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Definitions:

Self-Monitoring

The practice of observing and regulating one's own behavior in social situations to fit into different environments or to achieve personal goals.

Conscientiousness

A personality trait characterized by organization, responsibility, and carefulness.

Long Life

Typically refers to an unusually extended lifespan in humans or other organisms, often attributed to genetic, lifestyle, or environmental factors.

Trait

A stable characteristic or quality of an individual that influences their behaviors and attitudes across different situations and over time.