The size of the spending multiplier depends on the level of real ...

[vinney12]

The size of the spending multiplier depends on the level of real GDP.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

According to adaptive expectations theory, which of the following would be the result of expansionary monetary and fiscal policies?
 a. There is a short-run reduction in unemployment.
  b. There is a long-run trade off between inflation and unemployment.
  c. The inflation rate falls in the long run.
  d. The economy always operates at the natural rate of unemployment

[aham8f]

Answer to Question 1

False

Answer to Question 2

a

[vinney12]

TYSM

[aliotak]

Gracias!