According to Adaptive Expectations Theory, Which of the Following Would

question 14

Multiple Choice

According to adaptive expectations theory, which of the following would be the result of expansionary monetary and fiscal policies?

• A)The economy self-corrects to the natural rate of unemployment.
• B)There is no long-run trade off between inflation and unemployment.
• C)The inflation rate rises.
• D)All of these.

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Definitions:

Injustice

A situation or action that is perceived as unfair, unequal, or undeserving.

Preexisting Duty Rule

In contract law, a principle that states if someone is already legally required to perform a certain duty, promising to perform that duty is not sufficient consideration for a new contract.

Consideration

The value (such as money, services, or goods) promised in a contract that motivates parties to enter into the agreement.

Ethical

Related to moral principles or the branch of knowledge dealing with these.