A Mainstream Criticism of the Rational Expectations Theory Is That

question 86

Multiple Choice

A mainstream criticism of the rational expectations theory is that:

• A) The theorists confuse correlation with causation in interpreting the empirical evidence
• B) People do not make consistent forecasting errors which can be exploited by policy makers
• C) Many markets are not purely competitive and do not adjust rapidly to changing market conditions
• D) The data indicate that economic policy does not affect real GDP and employment

---

Definitions:

Coil Instructions

Commands used in ladder logic programming for PLCs to energize or de-energize output devices, such as relays or solenoids, controlling their state.

Input Instructions

Commands or protocols that guide the processing of inputted data into a system or device.

Internal Relay Instructions

Commands within a PLC program that simulate the function of physical relays, managing the flow of logic without requiring external hardware.