If Workers and Firms Have Rational Expectations,they Understand That ________

question 223

Multiple Choice

If workers and firms have rational expectations,they understand that ________ monetary policy will raise the inflation rate,so actual inflation ________ expected inflation.

• A)expansionary; will be equal to
• B)expansionary; will be greater than
• C)contractionary; will be equal to
• D)contractionary; will be less than
• E)expansionary; will be less than

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Definitions:

Stimulus

Any object, event, or change in the environment that elicits a response from an organism.

Positive Reinforcer

A stimulus which, when presented after a behavior, increases the likelihood of that behavior being repeated.

Negative Reinforcer

An aversive event that, when removed after a behavior, increases the likelihood of that behavior being repeated in the future.

Positive Reinforcer

A stimulus that, when introduced after a behavior, increases the likelihood of that behavior being repeated.