Because of the Lag of the Effects of Changes in Monetary

Multiple Choice

Because of the lag of the effects of changes in monetary policy and the failure of forecasters to anticipate supply-side shocks as well as changes in money demand or velocity,activist policy changes have tended at times during the mid-1970s to

A) accelerate inflation during expansions.
B) increase unemployment during recessions.
C) accelerate inflation and increased unemployment.
D) dampen inflation and decrease unemployment.