In General,the Faster Inflationary Expectations Adjust,the

question 1

Multiple Choice

In general,the faster inflationary expectations adjust,the:

• A)less macro policy can influence unemployment.
• B)better discretionary policy can be expected to work.
• C)slower the adjustment of the short-run Phillips curve.
• D)stronger the case for active policy.
• E)more effectively a policy can influence unemployment.

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Definitions:

Rational Agents

Entities that make decisions by logically assessing options and outcomes to maximize their own benefit.

Positive Outcome

A result that is beneficial, favorable, or desirable in nature.

Universal Law

A principle or rule considered to be objectively valid, applicable to all members of a defined group or condition.

Trust

A firm belief in the reliability, integrity, or ability of someone or something, fundamental for building relationships and ensuring cooperative behavior.