Which of the Following Is False

question 53

Multiple Choice

Which of the following is false?

• A)If people can anticipate the plans of policy makers and alter their behavior quickly, their behavior could neutralize the intended impact of government action on real GDP.
• B)The theory of rational expectations leads to optimistic conclusions regarding macroeconomic policy's ability to achieve its intended economic goals.
• C)Rational expectation economists believe that wages and prices are flexible, and that workers and consumers incorporate the likely consequences of government policy changes quickly into their expectations.
• D)Catching consumers and businessmen off-guard with macroeconomic policy changes gets harder the more you try to do it.
• E)None of the above are false; all are true.

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Definitions:

All-You-Can-Eat

All-You-Can-Eat offers patrons the ability to consume as much food as they desire for a fixed price, commonly found in restaurants and buffets.

Need

A requirement essential for an organism to live a healthy life, or in a business context, a demand that drives consumer behavior or market trends.

Organizational Buying

The process by which businesses or organizations make purchasing decisions and buy products and services for operational or resale purposes.

Decision Criteria

Decision criteria are the standards or benchmarks used to guide the decision-making process, helping to evaluate and prioritize different options.