Expectations About Future Price Levels and Future Output and Employment

Multiple Choice

Expectations about future price levels and future output and employment conditions:

A) have no effect on people's spending behavior.
B) have never been a matter of concern for economic policy makers.
C) can turn fears of inflation or recession into self-fulfilling prophecies.
D) simplify the job of stabilizing the economy by ensuring that everyone sees the future in exactly the same way.