Under the Natural Rate Hypothesis, Expansionary Monetary and Fiscal Policies

question 90

Multiple Choice

Under the natural rate hypothesis, expansionary monetary and fiscal policies can at best produce a:

• A)permanent change in the long-run Phillips curve.
• B)short-run change in the unemployment rate.
• C)long-run change in the unemployment rate.
• D)permanent change in the unemployment rate.

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Definitions:

Social Facilitation

The tendency for individuals to perform differently when in the presence of others than when alone, typically improving performance on simple or well-practiced tasks.

Social Loafing

The tendency of individuals to exert less effort when working in a group than when working alone.

Social Norm

Unwritten rules or expectations for behavior in a given society or group that guide and constrain individual behavior, promoting social order and cohesion.

Drink Coffee

The act of consuming a beverage made by brewing roasted and ground beans from the Coffea plant.