Author Question: According to the rational expectations school, when the economy is operating at the potential output ... (Read 22 times)

Pea0909berry · **on:** Jun 30, 2018

According to the rational expectations school, when the economy is operating at the potential output level, a temporary decrease in unemployment is possible through appropriate monetary policybut only if workers and employers are aware in advance of the Fed's intentions.
a. True
b. False
Indicate whether the statement is true or false

Question 2

A credible policy designed to lower inflation is likely to push the economy into recession.
a. True
b. False
Indicate whether the statement is true or false