Proponents of the Theory of Rational Expectations Contend That

question 128

Multiple Choice

Proponents of the theory of rational expectations contend that:

• A) people make rational forecasts using all existing information.
• B) business cycles are generally caused by shifts in aggregate demand.
• C) full employment is rarely achieved.
• D) stickiness of prices is the primary cause of inflation.

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Definitions:

Product Liability

The legal field that holds manufacturers, distributors, suppliers, and retailers accountable for injuries caused by their products.

Legal Liability

The legal responsibility to compensate for harm or wrongdoing established under civil law, subjecting individuals or entities to legal consequences.

Manufacturers

Entities engaged in the production of goods from raw materials through the use of machines and labor.

Injuries Or Damages

Physical harm to a person or deterioration or loss to property, respectively, which may be subject to compensation through legal claims.