Author Question: Refer to Figure 28-6. If firms and workers have rational expectations, an expansionary monetary ... (Read 97 times)

moongchi · **on:** Jun 29, 2018

Refer to Figure 28-6. If firms and workers have rational expectations, an expansionary monetary policy will cause the short-run equilibrium to move from

A) point B to point A.
B) point B to point C.
C) point C to point A.
D) point A to point B.
E) point A to point C.

Question 2

In reality, the Fed is unable to use monetary policy to keep real GDP exactly at its potential level.

Indicate whether the statement is true or false