Author Question: Refer to the information provided in Figure 32.3 below to answer the question(s) that follow. Refer ... (Read 46 times)

Awilson837

  • Hero Member
  • *****
  • Posts: 509

Question 1

The Lucas supply function, in combination with the assumption that expectations are rational, implies that an announced monetary policy change will


◦ not change output.
◦ decrease output, but never increase output.
◦ either increase or decrease output, depending on the type of monetary policy change.
◦ increase output, but never decrease output.

Question 2

Refer to the information provided in Figure 32.3 below to answer the question(s) that follow.








Refer to Figure 32.3. Suppose the economy is at Point 
A. According to the rational expectation theory, an unanticipated increase in money supply


◦ leaves the economy at Point 
A.
◦ moves the economy to Point 
B.
◦ moves the economy to Point 
C.
◦ moves the economy to Point 
D.


chinwesucks

  • Sr. Member
  • ****
  • Posts: 341

Answer 1

not change output.

Answer 2

moves the economy to Point 
B.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

jhjkgdfhk

  • Hero Member
  • *****
  • Posts: 569

Question 1

Refer to the information provided in Figure 32.3 below to answer the question(s) that follow.








Refer to Figure 32.3. Suppose the economy is at Point 
A. According to the new classical theory, an anticipated increase in aggregate demand


◦ leaves the economy at Point 
A.
◦ moves the economy to Point 
B.
◦ moves the economy to Point 
C.
◦ moves the economy to Point 
D.

Question 2

Refer to the information provided in Figure 32.3 below to answer the question(s) that follow.








Refer to Figure 32.3. Suppose the economy is at Point 
A. According to the rational expectation theory, an unanticipated decrease in money supply


◦ leaves the economy at Point 
A.
◦ moves the economy to Point 
B.
◦ moves the economy to Point 
C.
◦ moves the economy to Point 
D.



Heffejeff

  • Sr. Member
  • ****
  • Posts: 336

Answer 1

moves the economy to Point 
C.

Answer 2

moves the economy to Point 
D.





 

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

Did you know?

The B-complex vitamins and vitamin C are not stored in the body and must be replaced each day.

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

Did you know?

Between 1999 and 2012, American adults with high total cholesterol decreased from 18.3% to 12.9%

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

For a complete list of videos, visit our video library