Author Question: A goal of very high employment may lead to ________. A) inflationary monetary policy B) ... (Read 81 times)

KimWrice · **on:** Jun 30, 2018

A goal of very high employment may lead to ________.

A) inflationary monetary policy
B) inflationary fiscal policy
C) demand-pull inflation
D) all of the above
E) none of the above

Question 2

If the public believes that the commitment to a nominal anchor is not credible, the effect of a negative aggregate demand shock is for ________.

A) short-run aggregate supply to shift down
B) short-run aggregate supply to remain unchanged
C) short-run aggregate supply to shift up
D) inflation, but not economic activity, to decrease