Multiple Choice
If an increase in the growth rate of AD leads to an increase in real GDP in the short run:
A) the increase in AD was correctly anticipated.
B) the increase in AD was greater than anticipated.
C) the increase in AD was less than anticipated.
D) the increase in AD could have been any of the above.
Correct Answer:

Verified
Correct Answer:
Verified
Q130: There is a tendency for inflation rates
Q131: Which of the following would move the
Q132: In the rational expectation model, government control
Q133: Why is indexing not commonly adopted in
Q134: Which of the following is false?<br>A)If people
Q136: Rational expectations theory implies that the more
Q137: Critics of the extreme rational expectations theory
Q138: According to the rational expectation view, the
Q139: Many economists think that, in the long
Q140: The novelty of Phillips' article was his