Under adaptive expectations, the short-term effect of an unanticipated shift to a more expansionary macroeconomic policy will be a
a. temporary reduction in the unemployment rate.
b. permanent reduction in the unemployment rate.
c. temporary reduction in the inflation rate.
d. permanent reduction in the inflation rate.
A
Economics
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The utilitarian case for redistributing income is based on the assumption of
a. collective consensus. b. a notion of fairness engendered by equality. c. diminishing marginal utility. d. rising marginal utility.
Economics
Explain the difference between planned and actual investment in the economy. Why is the distinction important?
What will be an ideal response?
Economics