Multiple Choice
An unannounced increase in the money supply will increase both prices and real GDP under
A) neither rational nor adaptive expectations.
B) rational but not adaptive expectations.
C) adaptive but not rational expectations.
D) both adaptive and rational expectations.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: In a world of rational expectations,<br>A) an
Q3: Real wages will rise if<br>A) money supply
Q4: If wages and prices are flexible, an
Q5: If wages do not instantaneously adjust to
Q6: Adaptive inflationary expectations are based on<br>A) monetary
Q7: If wages instantaneously adjust to reflect expected
Q8: If the consensus in securities markets is
Q9: Contractual inflexibility is most likely to slow
Q10: Which of the following would be included
Q11: If wages and prices are flexible and