Refer to Figure 28-6. If firms and workers have adaptive ...

[jman1234]

Refer to Figure 28-6. If firms and workers have adaptive expectations, an expansionary monetary policy will cause the short-run equilibrium to move from
 
  A) point C to point B.
  B) point B to point C.
  C) point A to point B.
  D) point B to point A.
  E) point A to point C.

Question 2

In the United States, the average length of expansions from 1950 to 2009 was more than twice as long than they were from 1900 to 1950.
 
  Indicate whether the statement is true or false

[trog]

Answer to Question 1

C

Answer to Question 2

TRUE