Which of the Following Is False

question 134

Multiple Choice

Which of the following is false?

• A)​If people can anticipate the plans of policy makers and alter their behavior quickly, their behavior could neutralize the intended impact of government action on real GDP.
• B)​The theory of rational expectations leads to optimistic conclusions regarding macroeconomic policy's ability to achieve its intended economic goals.
• C)​Rational expectation economists believe that wages and prices are flexible, and that workers and consumers incorporate the likely consequences of government policy changes quickly into their expectations.
• D)​Catching consumers and businessmen off-guard with macroeconomic policy changes gets harder the more you try to do it.

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Definitions:

Tort

A civil wrong that causes someone else to suffer loss or harm resulting in legal liability for the person who commits the tortious act.

Defamation

The process of making untrue declarations about an individual that harm that individual's good name.

Falsehood

An untrue statement made with the intent to deceive.

Third Party

An entity not directly involved in a contract or transaction but who may be affected by its outcomes.