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    Exam 38: Current Issues in Macro Theory and Policy
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    Rational Expectations Theory Implies That The
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Rational Expectations Theory Implies That The

Question 12

Question 12

Multiple Choice

Rational expectations theory implies that the:


A) aggregate demand curve is vertical.
B) long-run aggregate supply curve is vertical.
C) long-run aggregate supply curve is horizontal.
D) long-run aggregate supply curve is quite flat.

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