If the IS Curve Is Relatively Steep,then

question 55

Multiple Choice

If the IS curve is relatively steep,then

• A)there can be no long-run tradeoff between inflation and unemployment.
• B)monetary policy cannot be very effective in changing GDP.
• C)rational expectations theory is probably correct.
• D)Ricardian equivalence most likely holds.
• E) budget deficits will not affect future capital accumulation.

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Definitions:

Ballistic

Relating to or involving the dynamics, flight, behavior, or effects of projectiles.

PNF

Proprioceptive Neuromuscular Facilitation, a set of stretching techniques used to enhance both active and passive range of motion with the goal of improving motor performance and aiding rehabilitation.

Static

Unchanging in condition; at rest or in equilibrium.

Flexibility

The ability of joints and muscles to move through their full range of motion without discomfort or restriction.