The aggregate demand curve is Y = 15 - 0.2 when the inflation ...

[savannahhooper]

The aggregate demand curve is Y = 15 - 0.2 when the inflation rate falls from 6 percent to 5 percent. Then, output increases from 13.8 to 17. The response of monetary policy to the inflation decline has been ________.
 
  A) autonomous tightening
  B) automatic adjustment
  C) autonomous easing
  D) to increase autonomous spending
  E) none of the above

Question 2

Anti-inflationary policy is less costly when that policy is anticipated in ________.
 
  A) traditional Keynesian theory
  B) new Keynesian theory
  C) real business cycle theory
  D) institutionalist theory

[mjenn52]

Answer to Question 1

C

Answer to Question 2

B

[savannahhooper]

TYSM

[vickybb89]

Thanks for the timely response, appreciate it