Which of the following accurately represents a fundamental proposition derived from modern macroeconomic theory?
A) Economies are generally stable over the long term with long-term growth driven by the sources of growth of potential GDP.
B) Macroeconomic policy, in the short run, should be targeted at keeping inflation low and minimizing fluctuation in major macroeconomic variables.
C) People form expectations about the future based on accurate processing of unbiased information gleaned from their personal and collective experiences.
D) All of the above.
E) None of the above.
Correct Answer:
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