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Author Question: Using the aggregate demand and supply model, expansionary fiscal policy will not affect the price ... (Read 104 times)

jc611

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on: Jun 30, 2018
Using the aggregate demand and supply model, expansionary fiscal policy will not affect the price level, but will restore full-employment GDP.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Under adaptive expectations, the short-term effect of an unanticipated shift to a more expansionary macroeconomic policy will be a:
 a. temporary reduction in the unemployment rate.
  b. permanent reduction in the unemployment rate.
  c. temporary reduction in the inflation rate.
  d. permanent reduction in the inflation rate.


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Bigfoot1984

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Reply #1 on: Jun 30, 2018
Answer to Question 1

False

Answer to Question 2

a


jc611

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Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

smrtceo

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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