Question: Multiple Select Questlon Select all that apply According to rational expectations economists, as a result of an increase in aggregate demand due to an expansionary
Multiple Select Questlon
Select all that apply
According to rational expectations economists, as a result of an increase in aggregate demand due to an expansionary monetary policy, real output and employment would not increase because of which of the following reasons?
Firms would anticipate that the policy is inflationary and raise the prices of their products.
Workers would anticipate that the policy is inflationary and press for higher nominal wages.
Workers would anticipate that the policy is deflationary and press for higher nominal wages.
Lenders would anticipate that the policy is inflationary and raise their nominal interest rates on loans.
Firms would anticipate that the policy is deflationary and raise the prices of their products.
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