Question1. Determine which of the following theories of expectations holds that individuals usa all information available in forming expectations?

1. Rational expectations theory
2. Certainty equivalent theory
3. Expected value analysis
4. Adaptive expectations theory

Question2. The only school of economics that could be construed as advocating big government are the :

1. classicals
2. keynesians
3. montearists
4. supply-sider

Question3. Proponents of the monetarist approach to economic stabilzation think that the growth of the money supply should be equal to the:

1. prime rate
2. long-term average growth of real output
3. real interest rate
4. growth of federal expenditures

4. A conclusion of the theory of rational expectations is that the impact of discretionary fiscal polices designed to shift the aggregate demand curve will:

1. result in no net change in aggregate demand
2. be anticipated and compensated for, causing no significant in real GDP or employment levels
3. be completely opposite of the intended result
4. be incorrectly evaluated by most economist