Multiple Choice
Incorporation of expectations into economic decision making and the economic experience of recent decades indicate that in the long run
A) inflation relates directly to unemployment.
B) inflation is inversely related to unemployment.
C) there is no trade-off between inflation and unemployment.
D) high unemployment is a primary cause of inflation.
Correct Answer:

Verified
Correct Answer:
Verified
Q132: (I) Rational expectations adherents believe that decision makers
Q133: When it comes to macro-policy, most economists
Q134: Regarding the issue of economic stability, nonactivists
Q135: Suppose the annual rate of inflation has
Q136: After an extended period of steady inflation
Q138: According to the rational expectations theory, expansionary
Q139: The variables in the index of leading
Q140: Most economists agree that<br>A) fiscal policy is
Q141: According to the adaptive expectations hypothesis, people
Q142: Under the adaptive expectations theory, people persistently<br>A)