Rational Expectations Theory Implies That the More Completely the Effects

question 136

True/False

Rational expectations theory implies that the more completely the effects of policy makers are foreseen, the smaller their short run effects on real output and unemployment, and the greater their short run effects on the price level.

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Definitions:

Receptive Bilingualism

A form of bilingualism where an individual can understand two languages but can only speak or write in one.

Passive Bilingualism

The ability to understand a second language but not speak it fluently.

Linguistic Dominance

The assertion of one language over others, often leading to the marginalization of minority languages and cultures.

Second Language

A language that is learned after one's native language, often through formal education or immersion in a language-speaking environment.