According to Rational Expectations Theory, the Cause of Observed Instability

question 67

Multiple Choice

According to rational expectations theory, the cause of observed instability in the private economy would most likely be due to:

• A) Changes in aggregate supply
• B) Inappropriate monetary policy
• C) The instability of investment spending in the economy
• D) Unanticipated aggregate demand and aggregate supply shocks in the short run

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Definitions:

Animal

A living organism characterized by voluntary movement, responsive to environment, and having specialized sensory organs.

Fish

Aquatic vertebrates that have gills throughout life and limbs, if any, in the shape of fins.

Canary

A small, often yellow, songbird that is historically used in coal mines to detect dangerous gases.

Biology Classroom

A dedicated instructional space for the teaching and learning of biological sciences, equipped with necessary materials and resources to facilitate practical and theoretical understanding of biology.