A Conclusion of the Theory of Rational Expectations Is That

question 49

Multiple Choice

A conclusion of the theory of rational expectations is that, in the short run, the impact of discretionary fiscal policies designed to shift the AD curve to the right will:

• A)result in an increase in the demand for money once people's expectations have been accounted for.
• B)shift the AD curve in the opposite direction intended once people's expectations have been accounted for.
• C)result in no significant change in real or nominal GDP or employment once the change is anticipated.
• D)result in a change in real output in the intended direction if the policy is anticipated.
• E)result in a change in real output in the long run if the policy is unanticipated.

Identify the capacity of companies to make mistakes and learn from them.

Understand the necessity of multiple types of control beyond feedback control.

Realize the inspiration behind innovative customer service approaches in retail.

Identify examples of feedforward control in predictive decision-making.

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Definitions:

Overall Subject

The main or general topic of discussion, study, or interest in any given context.

Business Communication Efforts

The attempts by a business to share information, expectations, and objectives with its stakeholders.

Written Medium

A form of communication that involves the expression of thoughts, ideas, or information through the written word.

Digital Channel

A means of communication or distribution of information through digital platforms, such as social media, email, or websites.