From the new classical perspective, the disinflation in the early ...

[mckennatimberlake]

From the new classical perspective, the disinflation in the early 1980s resulted in a significant recession because
 
  a. the policy change to disinflation was unanticipated.
  b. the policy was not credible.
  c. inflationary expectations were backward looking.
  d. None of the above
  e. both a and b.

Question 2

If the output gap is constant at minus 2 and the inflation rate has fallen from 6 percent to 5 percent, then next period's short-run aggregate supply curve might be ________.
 
  A)  = 5 - 0.5 (13 - 15)
  B)  = 5 + 0.5 (13 - 15)
  C)  = 4 + 0.5 (13 - 15)
  D)  = 5 + 2 (11 - 15)
  E) none of the above

[itsakadoozi]

Answer to Question 1

B

Answer to Question 2

B

[mckennatimberlake]

TYSM

[xiazhe]

Gracias!