Using the aggregate demand and supply model, expansionary fiscal ...

[jc611]

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.

[Bigfoot1984]

Answer to Question 1

False

Answer to Question 2

a

[jc611]

Thanks for the timely response, appreciate it

[LVPMS]

Excellent