Author Question: When all relevant information is used to forecast inflation, the resulting forecast is called A) ... (Read 149 times)

karen · **on:** Jun 29, 2018

When all relevant information is used to forecast inflation, the resulting forecast is called

A) a rational expectation.
B) a natural expectation.
C) an expected forecast.
D) an expansionary expectation.
E) the expected expectation.

Question 2

In the short run, lowering the federal funds rate shifts the aggregate demand curve ________ so that real GDP ________ and the price level ________.

A) leftward; decreases; rises
B) rightward; increases; rises
C) rightward; decreases; rises
D) leftward; decreases; falls
E) rightward; increases; falls