If Aggregate Demand Shifts Right, Then Eventually Price Level Expectations

question 46

True/False

If aggregate demand shifts right, then eventually price level expectations rise. The increase in price level expectations causes the short-run aggregate-supply curve to shift to the left.

Recognize the significance of the Employment Act of 1946.

Understand the effects of economic contractions and expansions on government policy and vice versa.

Discuss the challenges and criticisms of fiscal policy as a tool for economic stabilization.

Describe how misestimates of natural unemployment rates can affect economic policies and outcomes.

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