According to the rational expectationists

A) the so-called recessionary and inflationary gaps of the 1970s did not exist.
B) even if there were a recession or substantial inflation,the best government policy would be to do nothing.
C) the dramatic oil price shocks of 1973 and 1979 created declines in aggregate supply,lowering the natural level of real GDP.
D) the prime economic mover is aggregate supply,not aggregate demanD.
E) All of the choices/statements are true.

Rational expectationists believe that markets generally function well and that market outcomes reflect the collective expectations of market participants. They argue that government intervention often leads to unintended consequences, hence the belief that in the face of recession or inflation, it might be best to do nothing (B). They also acknowledge the impact of supply shocks, such as the oil price shocks of the 1970s, on the economy's natural level of output (C), and emphasize the role of aggregate supply in driving economic performance (D). Therefore, all the given statements align with the views of rational expectationists.