Suppose the inflation rate has been 6 percent over the past four years. If the Federal Reserve announces an increase in the growth of the money supply, adaptive expectations would predict an inflation rate of 6 percent

a. True
b. False
Indicate whether the statement is true or false


True

Economics

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The long-run adjustment to a negative supply shock results in

A) the price level rising. B) the short-run aggregate supply curve shifting to the right. C) workers being willing to accept higher wages. D) unemployment rising.

Economics

What is the political basis for policies such as farm price ceilings and high taxation of agriculture? Are urban residents well served by such policies?

What will be an ideal response?

Economics

Most cultural theories of poverty assert that the poor lack sufficient desire and motivation to escape poverty

Indicate whether the statement is true or false

Economics

The purchase of VCU2 by Tomas Tiergarten, a private resident, causes the nation's:

a. Monetary base to remain the same. b. M2 money supply to fall. c. M2 money multiplier to fall. d. M2 money supply to rise.

Economics