If the Fed follows a high-growth monetary policy, but workers ...

[jman1234]

If the Fed follows a high-growth monetary policy, but workers believe that the policy is time inconsistent, then low-wage contracts will be in force and unemployment will decline.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Suppose the demand for a good is currently unit elastic over the relevant range. Then a new substitute good is introduced to the market. As a result, demand over that range is now likely to be
 a. Unit elastic.
 b. Relatively elastic.
 c. Relatively inelastic.
  d. Perfectly elastic.

[31809pancho]

Answer to Question 1

True

Answer to Question 2

b