One Key Assumption Lying Behind the Policy Irrelevance Proposition Is

question 169

Multiple Choice

One key assumption lying behind the policy irrelevance proposition is that

• A)wages are "sticky" downward.
• B)prices are "sticky" upward.
• C)the rational expectations hypothesis is correct.
• D)markets are not purely competitive.

---

Definitions:

Level Scheduling

A manufacturing process management technique aimed at producing goods at a constant rate to avoid fluctuations in production and inventory levels.

Hire/Layoff Workers

The process of recruiting and integrating new employees into a company, or conversely, reducing the workforce through terminations due to economic or organizational reasons.

Aggregate Planning

A method involving the creation, examination, and upkeep of an initial, rough timetable for all the activities within an organization.

Put Option

A financial contract giving the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.