The Lucas Supply Model, in Combination with the Assumption That

question 84

Multiple Choice

The Lucas supply model, in combination with the assumption that expectations are rational, leads to the conclusion that

• A) expansionary policies, but not contractionary policies, can have an impact on real output.
• B) contractionary policies, but not expansionary policies, can have an impact on real output.
• C) only unanticipated policy changes can have an impact on output.
• D) neither anticipated nor unanticipated policy changes can have an impact on output.

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Definitions:

Action Potential

A short-lasting event in which the electrical membrane potential of a cell rapidly rises and falls, allowing neurons to communicate.

Potassium Ions

Positively charged atoms that are essential for various physiological processes in living organisms, including nerve impulse transmission and muscle contraction.

Sodium Channels

Membrane proteins involved in the conduction of sodium ions through neuronal and muscle cell membranes, crucial for generating electrical signals.

Voltage-gated Channels

Protein channels that open or close in response to changes in membrane potential, allowing ions to enter or exit cells and facilitate electrical signaling.