When the effects of a more expansionary macroeconomic policy are quickly and accurately anticipated, the policy will
a. increase inflation without reducing unemployment.
b. increase unemployment while exerting little impact on inflation.
c. decrease unemployment while exerting little impact on inflation.
d. fail to exert a significant impact on either unemployment or inflation.
A
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Producer surplus is the price received ________ summed over the quantity sold
A) plus the consumer surplus B) multiplied by the quantity sold C) minus its marginal cost of production D) subtracted from the value of the good
The natural rate of interest is the rate
A) which equates saving and investment under any employment condition. B) which equates saving and investment with acceptable, but low, unemployment. C) which equates saving and investment at an unemployment rate of 5 percent or less. D) which equates saving and investment at full employment.