According to the Rational Expectations Theory, If All Firms Have

question 100

Multiple Choice

According to the rational expectations theory, if all firms have rational expectations and wages and prices are flexible, disequilibrium in a market

• A) will never exist.
• B) will only exist in times of high inflation.
• C) will only be temporary.
• D) will be a common occurrence.

---

Definitions:

Pain

An unpleasant sensory and emotional experience associated with actual or potential tissue damage, or described in terms of such damage.

Entertaining Movie

An entertaining movie is a film designed to provide amusement and enjoyment to its audience.

Tactile Stimulation

The use of touch or physical contact to elicit responses or sensations, important for human development and can impact emotional and physical health.

Gustatory

Relating to the sense of taste and the perception of flavors.