The Proposition That Policy Actions Have No Real Effects in the Short

question 149

Multiple Choice

The proposition that policy actions have no real effects in the short run if the policy actions are anticipated is known as

• A) the unemployment stabilization proposition.
• B) the policy irrelevance proposition.
• C) the policy illusion proposition.
• D) the Keynesian proposition.

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Definitions:

Trend

A general direction in which something is developing or changing, observed in data over time.

Annual Time-series

A sequence of data points representing the value of a variable over a series of years.

Sequential Order

The arrangement of objects, events, or values in a specific sequence where the order is significant.

Dependent Variable

The variable in an experiment that is observed and measured to see how it is affected by the independent variable.