Under the Rational Expectations Hypothesis, If Wages Adjust Rapidly to New

question 276

Multiple Choice

Under the rational expectations hypothesis, if wages adjust rapidly to new information about intended policy actions, the only time that changes in government policies have real effects is when

• A) the changes are unanticipated.
• B) the changes involve fiscal policy.
• C) the changes involve monetary policy.
• D) the changes affect aggregate demand.

Understand the neurological and psychological mechanisms underlying mimicry and empathy.

Describe the processes involved in forming impressions and judgments about others.

Appreciate the complexity and significance of theory of mind in social cognition.

Recognize the role of stereotypes and biases in influencing perceptions and actions towards others.

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Definitions:

Cognitive Coping

Strategies that involve the conscious effort to solve personal and interpersonal problems, and seeking to master, minimize, or tolerate stress or conflict.

Hypothalamus

A region of the brain responsible for the regulation of certain metabolic processes and other activities of the autonomic nervous system, including hunger and temperature control.

Adrenal Glands

Small glands located on top of each kidney which produce various hormones including adrenaline and cortisol, involved in response to stress.

Visual Cliff

An experimental apparatus used to measure infants' perception of depth and their fear of falling.