Rational Expectation Theory Implies That Accurately Anticipated Change in Aggregate

question 69

Multiple Choice

Rational expectation theory implies that accurately anticipated change in aggregate demand:

• A)​will increase RGDP in the short run.
• B)​will affect RGDP and inflation only in the long run.
• C)​may affect RGDP but not nominal GDP in the short run.
• D)​will do none of the above.

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