Implied in new Keynesian theory is that when policy is correctly anticipated, there is a tradeoff between inflation and unemployment in
A) neither the short run nor the long run.
B) both the short run and the long run.
C) the short run, but not in the long run.
D) the long run, but not in the short run.
C
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Why are perfectly competitive markets considered efficient?
What will be an ideal response?
What is behavioral economics?
What will be an ideal response?
With a contractionary monetary policy, as the output gap increases, the response of the central bank will tend to cause net capital outflows to ________ and cause the nominal exchange rate to ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Regulation of monopolies that allows prices to reflect only the actual cost of production and no monopoly profits is referred to as
A) cost-of-service regulation. B) rate-of-return regulation. C) service-opportunity regulation. D) natural regulation.