Which of the Following Is False

question 55

Multiple Choice

Which of the following is false?

• A)​Rational expectations theory suggests that government economic policies designed to alter aggregate demand to meet macroeconomic goals are of very limited effectiveness, because when policy targets become public, people will alter their own behavior from what it would otherwise have been, and in so doing, they largely negate the intended impact of policy changes.
• B)​If changes in inflation surprise people, they will have little effect on unemployment or real output in the short run.
• C)​An unanticipated increase in AD as a result of an expansionary monetary policy stimulates real output and employment in the short run, but an anticipated increase in AD does not.
• D)​Unanticipated increases in AD expands output and employment in the short run, but only increases the price level in the long run.

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Definitions:

Academic Intelligence

Refers to the intellectual capabilities measured through traditional educational testing and academic achievements.

IQ Scores

Numerical measurements of intelligence, usually defined through standardized testing, designed to assess human intelligence.

School Grades

Measures of academic performance, typically represented by letters or numbers, that reflect a student's understanding and mastery of coursework.

Intellectual Disability

A condition characterized by significant limitations in both intellectual functioning and in adaptive behavior, which covers many everyday social and practical skills.