Business, 10.08.2021 18:40 cpcoolestkid4

The rational expectations hypothesis suggests that if wages and prices are flexible, growth in the money supply can alter real variables only if the growth is anticipated. anticipated monetary policy actions can affect nominal variables, but not real variables. unanticipated monetary policy actions can shift the long-run aggregate supply curve but cannot shift the aggregate demand curve. unanticipated monetary policy actions can affect real variables, but not nominal variables.

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