Author Question: Under the natural rate hypothesis, expansionary monetary and fiscal policies can at best produce a: ... (Read 65 times)

Cooldude101 · **on:** Jun 30, 2018

Under the natural rate hypothesis, expansionary monetary and fiscal policies can at best produce a:
a. permanent change in the long-run Phillips curve.
b. short-run change in the unemployment rate.
c. long-run change in the unemployment rate.
d. permanent change in the unemployment rate.

Question 2

Which of the following statements is true?
a. Deflation is an increase in the general level of prices.
b. The consumer price index (CPI) measures changes in the average prices of consumer goods and services.
c. Disinflation is an increase in the rate of inflation.
d. Real income is the actual number of dollars received over a period of time.
e. The real interest rate equals the nominal rate of interest plus the inflation rate.