Multiple Choice
Before the development of expectations theory,
A) monetary policy prescriptions were strictly passive.
B) monetary policy had no real effects in the short run.
C) monetary policy prescriptions were strictly activist.
D) monetary policy only had real effects in the long run.
E) economists did not understand the idea of sticky prices.
Correct Answer:
Verified
Correct Answer:
Verified
Q73: Monetary policy has real effects only when<br>A)
Q74: When an employer is forced to increase
Q75: According to adaptive expectations theory,when inflation decelerates,<br>A)
Q76: A _ the short-run aggregate supply curve
Q77: Contractionary monetary policy _ interest rates,causing _
Q79: Which two economic conditions challenged assumptions of
Q80: Explain how expansionary monetary policy can lead
Q81: The Federal Reserve generally uses _ to
Q82: As expected inflation increases,the short-run Phillips curve<br>A)
Q83: The theory behind the long-run Phillips curve