Multiple Choice
The questions with which Chapter 12 is concerned include each of the following except
A) what can shift the Phillips curve?
B) how has the natural rate of unemployment changed in the United States over the past couple of generations?
C) what determines the Fiscal Policy Reaction Function, and what determines its slope?
D) what does it mean for expectations of inflation to be static? Adaptive? Rational?
Correct Answer:
Verified
Correct Answer:
Verified
Q28: Under conditions of rational expectations of inflation,<br>A)
Q29: A favorable supply shock will<br>A) result in
Q30: If inflation is low and stable,<br>A) inflation
Q31: Each of the following is one of
Q32: The questions with which Chapter 12 is
Q34: The monetary policy reaction function is<br>A) an
Q35: Adaptive expectations of inflation prevail when people<br>A)
Q36: The parameter r<sub>r</sub> in the Taylor rule
Q37: The reason that expansionary policy cannot reduce
Q38: Static expectations of inflation prevail when people<br>A)