Under the adaptive expectations theory, expansionary monetary and fiscal policies designed to reduce the unemployment rate will be
a. ineffective in the long run.
b. ineffective in the short run.
c. noninflationary.
d. all of the above.
A
Economics
You might also like to view...
When the Fed is targeting the money supply, it has complete control over the interest rate
a. True b. False Indicate whether the statement is true or false
Economics
Refer to the graph above for a private closed economy. At the equilibrium level of GDP, saving will be:
A. $50 billion
B. $100 billion
C. $150 billion
D. Cannot be determined from the information given
Economics