The Rational-Expectations Hypothesis Implies That There Is No Need for Government

question 39

True/False

The rational-expectations hypothesis implies that there is no need for government stabilization policies.

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Definitions:

Generalization

The process of applying the outcomes of specific instances to broader situations or populations, often seen in learning and reasoning.

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus through conditioning.

Extinction

In behavioral psychology, the process through which the conditioned response is weakened when the conditioned stimulus is repeatedly presented without the unconditioned stimulus.

Conditioned Animal

An animal that has learned to respond in a specific way to a conditioned stimulus through the process of conditioning.