Implied in new Keynesian theory is that when policy is correctly anticipated, there is a tradeoff between inflation and unemployment in
A) neither the short run nor the long run.
B) both the short run and the long run.
C) the short run, but not in the long run.
D) the long run, but not in the short run.
C
Economics
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Give two reasons why GDP does not reflect total production in an economy
What will be an ideal response?
Economics
A budget line is constructed to show
a. how consumers who budget their expenditures achieve more satisfaction than those who do not. b. the set of all baskets that the consumer can afford, given prices and his or her income. c. the set of all baskets that the consumer would be willing to purchase given various prices for the goods in the basket. d. the set of all baskets that the consumer considers equally desirable.
Economics