QUESTION 20 for. A conclusion of the theory of rational expectations is that, in the short run, the impact of discretionary fiscal policies designed to shift the AD curve to the right will: O a result in no significant change in real or nominal GDP or employment once the change is anticipated. O b. shift the AD curve in the opposite direction intended once people's expectations have been accounted O c. result in an increase in the demand for money once people's expectations have been accounted for Od result in a change in real output in the long run if the policy is unanticipated. O e result in a change in real output in the intended direction if the policy is anticipated.

QUESTION 20 for. A conclusion of the theory of rational expectations is that, in the short run, the impact of discretionary fiscal policies designed to shift the AD curve to the right will: O a result in no significant change in real or nominal GDP or employment once the change is anticipated. O b. shift the AD curve in the opposite direction intended once people's expectations have been accounted O c. result in an increase in the demand for money once people's expectations have been accounted for Od result in a change in real output in the long run if the policy is unanticipated. O e result in a change in real output in the intended direction if the policy is anticipated.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter24: Fiscal Policy

Section: Chapter Questions

Problem 15P

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