The rational expectations hypothesis does not imply: – McqOptions

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1.	The rational expectations hypothesis does not imply:
A.	People do not make systematic errors.
B.	On average the economy will be close to Long-run Average Supply (LAS) Curve.
C.	Policy makers have better information about the economy than other economic actors.
D.	Macroeconomic policy changes must came as a surprise in order to have an impact on the real economy.
Answer» D. Macroeconomic policy changes must came as a surprise in order to have an impact on the real economy.

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