If Decision Makers Adjust Fully to Demand Stimulus Policies, Persistent

question 123

Multiple Choice

If decision makers adjust fully to demand stimulus policies, persistent expansionary macro-policy will lead to

• A) inflation with no lasting reductions in unemployment.
• B) a permanent reduction in unemployment.
• C) lower interest rates.
• D) more rapid economic growth.

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Definitions:

Dollar Sales

Dollar sales refer to the total value of goods or services sold by a company, stated in monetary terms.