Believers in the Hypothesis of Rational Expectations Argue That

question 74

Multiple Choice

Believers in the hypothesis of rational expectations argue that:

• A)​expansionary fiscal and monetary policy can reduce unemployment without creating inflation.
• B)​a trade-off exists between unemployment and inflation even in the long run.
• C)​the Phillips curve is vertical even in the short run for expected changes in inflation.
• D)​the Phillips curve is downward sloping even in the long run.

Understand the doctrine of respondeat superior and its application in liability cases involving employees or agents.

Recognize the requirements for properly terminating an agency relationship and the importance of notice to third parties.

Differentiate between expressed agency, implied agency, apparent agency, and agency by ratification.

Identify the roles and obligations within an agency relationship, including those of agents and principals.

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Definitions:

Voluntary Response

A behavioral action that is performed willingly and without coercion.

Classical Conditioning

A learning process in which a biologically potent stimulus is paired with a previously neutral stimulus to elicit a response.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention in classical conditioning.

Social-Cognitive Learning

The acquisition of knowledge or behaviors through observation of others, rather than through direct experience.