Author Question: If the Fed were to announce that fighting inflation is not a high priority for the immediate future ... (Read 49 times)

burchfield96 · **on:** Jun 30, 2018

If the Fed were to announce that fighting inflation is not a high priority for the immediate future ________.

A) households might expect higher inflation
B) the short run aggregate supply would shift upwards
C) firms might begin raising their prices to keep up with expected inflation
D) all of the above
E) none of the above

Question 2

According to which of the following models are economic agents assumed to have perfect information?

a. The new classical model
b. The classical model
c. The monetarist model
d. The Keynesian model