According to the Theory Based on Rational Expectations and Flexible

question 113

Multiple Choice

According to the theory based on rational expectations and flexible wages and prices,

• A) fiscal policy has less effect on real GDP than monetary policy in the long run.
• B) monetary policy has less effect on real GDP than fiscal policy in the long run.
• C) neither fiscal nor monetary policy influence real GDP in the long run.
• D) only the combination of discretionary fiscal policy and conservative monetary policy can affect real GDP in the long run.

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Definitions:

False Light

A privacy tort that involves presenting someone in a misleading way that might be embarrassing or offensive.

Commercial Purposes

Activities or operations intended for business interests, including transactions or endeavors aimed at generating profit.

Real Property

Immovable property consisting of land and the buildings and plant life thereon.

Acre of Land

A unit of area used in the imperial and US customary systems, equivalent to 43,560 square feet, commonly used in measuring parcels of land.