The creation of the European Union is an example of Hayek's:

In general, the faster inflationary expectations adjust, the: a. less macro policy can influence unemployment

b. better discretionary policy can be expected to work. c. slower the adjustment of the short-run Phillips curve. d. stronger the case for active policy. e. more effectively a policy can influence unemployment.

Since the U.S. economy expanded rapidly from 1992 to 2000, it must be true that

a. fiscal contraction overwhelmed monetary expansion. b. monetary expansion overwhelmed fiscal contraction. c. monetary expansion exactly offset fiscal contraction. d. monetary contraction overwhelmed fiscal expansion.