According to the Rational Expectations View, the Government Can Change

question 29

Multiple Choice

According to the rational expectations view, the government can change real output by:

• A)making appropriate and well-publicized fiscal and monetary policy changes in the long run.
• B)making appropriate and well-publicized fiscal and monetary policy changes in the short run.
• C)making unexpected changes in aggregate demand.
• D)keeping the economy away from inflation.
• E)making unexpected changes in aggregate supply.

---

Definitions:

Moderator

A variable that affects the strength or direction of the relationship between an independent and a dependent variable in statistical analyses.

Debate Topic

A point of discussion chosen for a structured exchange of arguments and counterarguments between parties with differing views.

Arguments

Reasons or sets of reasons provided to persuade others that an action or idea is right or wrong.

Stereotype

A fixed and overgeneralized belief about a particular group or class of people, often leading to prejudgment.