Author Question: The size of the spending multiplier depends on the level of real GDP. a. True b. False Indicate ... (Read 29 times)

vinney12 · **on:** Jun 30, 2018

The size of the spending multiplier depends on the level of real GDP.
a. True
b. False
Indicate whether the statement is true or false

Question 2

According to adaptive expectations theory, which of the following would be the result of expansionary monetary and fiscal policies?
a. There is a short-run reduction in unemployment.
b. There is a long-run trade off between inflation and unemployment.
c. The inflation rate falls in the long run.
d. The economy always operates at the natural rate of unemployment