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Author Question: If inflationary expectations on the part of the public increase, the trade-off between inflation and ... (Read 74 times)

@Brianna17

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on: Jun 29, 2018
If inflationary expectations on the part of the public increase, the trade-off between inflation and unemployment becomes worse.
 
  Indicate whether the statement is true or false

Question 2

Refer to Figure 26-12. In the dynamic AD-AS model, if the economy is at point A in year 1 and is expected to go to point B in year 2, the Federal Reserve would most likely
 
  A) not change interest rates. B) increase the inflation rate.
  C) increase interest rates. D) decrease interest rates.


fromAlphatoOmega22

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Reply #1 on: Jun 29, 2018
Answer to Question 1

TRUE

Answer to Question 2

C


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