According to the Rational Expectations Model,the Only Time Active Policy

question 163

Multiple Choice

According to the rational expectations model,the only time active policy has an impact on aggregate output is when

• A)it is expansionary
• B)it is contractionary
• C)it is unannounced
• D)the economy has a recessionary gap
• E)the economy has an expansionary gap

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Definitions:

Loyalists

Individuals, especially during the American Revolutionary War, who remained loyal to the British Crown and opposed the independence movement.

Western Hemisphere

The half of Earth that lies west of the Prime Meridian and east of the Antimeridian, including the Americas.

Treaty of Paris

The agreement signed in 1783 that ended the American Revolutionary War, recognizing the independence of the United States.

Native Americans

Indigenous peoples of the Americas, encompassing a wide range of cultures, languages, and histories prior to European colonization.