Question

When a shift in ________ occurs, rational expectations hold that its impact on output and employment will only be minimal.

Answer 1

Aggregate demand occurs.

Step-by-step explanation:

• The aggregate demand curve of the AD curve will move to the right and components of the demand like consummation, government, and investment spending on the exports and imports will rise. Macroeconomics states that the curve is vertical over time and people should rationally accept this pattern.