When a Person Bases Her Future Expectations for the Economy

question 165

Multiple Choice

When a person bases her future expectations for the economy on all available current data and her own judgment about future policy effects, this is known as

• A)the policy irrelevance proposition.
• B)rational expectations.
• C)irrational expectations.
• D)the new classical theory.

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Definitions:

International Workers of the World

Also known as the IWW or Wobblies, an international labor union founded in 1905 aiming for worker solidarity and the abolition of the wage system.

American Federation of Labor

A national federation of labor unions in the United States, founded in 1886, focused on advocating for the rights of skilled laborers.

American Protective League

A civilian organization during World War I that worked with federal law enforcement agencies to identify and counteract espionage and subversion.

Espionage and Sedition Acts

A set of laws enacted by the U.S. during World War I, making it illegal to interfere with military operations, support enemy nations, or hinder the war effort, often criticized for restricting free speech.