With rational expectations, a correctly anticipated policy that would increase AD would lead to:
a. higher inflation and lower unemployment in the short run
b. higher inflation and higher unemployment in the short run.
c. higher inflation and no change in unemployment in the short run.
d. lower inflation and lower unemployment in the short run.
c
Economics
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A) a monopoly. B) an oligopoly. C) only perfectly competition. D) only monopolistic competition. E) both perfect competition and monopolistic competition.
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When currency outstanding increases,
A) gold certificates rise. B) the money supply increases. C) Fed assets increase. D) bank deposits at the Fed decrease.
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