According to the Rational Expectation Hypothesis, Unpredictable Shocks May Cause

question 8

Multiple Choice

According to the rational expectation hypothesis, unpredictable shocks may cause

• A) disequilibrium in the labor market.
• B) uncontrollable inflation.
• C) long-lasting recession.
• D) sustained levels of unemployment.

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Definitions:

Nonsmokers

Individuals who do not smoke cigarettes and are not exposed to the habit of inhaling smoke from combustible tobacco products.

Positive Reinforcer

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

Noxious Stimulus

An unpleasant or harmful stimulus that can cause pain or discomfort to an organism.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without any prior learning or conditioning.