Multiple Choice
If the public believes that the commitment to a nominal anchor is not credible,the effect of a positive aggregate demand shock is for ________.
A) short-run aggregate supply to shift down
B) short-run aggregate supply to remain unchanged
C) short-run aggregate supply to shift up
D) inflation,but not economic activity,to increase
Correct Answer:
Verified
Correct Answer:
Verified
Q75: The notion that expectations will be identical
Q76: The "anchor" that sustains the credibility of
Q77: Consider two similar economies hit by the
Q78: A prediction based on rational expectations _.<br>A)relies
Q79: The academic work of Ben Bernanke,recent Chairman
Q81: The political business cycle involves the _.<br>A)expenditure
Q82: The constant growth rate rule for money,as
Q83: Which of the following has served most
Q84: Which of the following is least likely
Q85: Expectations about the future will always be