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Author Question: Related to the E conomics in Practiceon p. 645: Surveys by the bank of England suggest that ... (Read 75 times)

aabwk4

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Question 1

The economic view that retains the assumption of rational expectations but drops the assumption of completely flexible prices and wages is called


◦ new Keynesian economics.
◦ supply-side economics.
◦ monetarism.
◦ real business-cycle economics

Question 2

Related to the E
conomics in Practice on p. 645: Surveys by the bank of England suggest that consumers tend to expect future inflation to be


◦ what they perceive past inflation to have been.
◦ equal to the actual estimates of past inflation made by the government.
◦ directly related to the interest rate.
◦ relatively unpredictable.


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Marked as best answer by aabwk4 on Apr 19, 2019

spencer.martell

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