If People Eventually Adjust Their Inflation Expectations So That in the Long

question 36

Multiple Choice

If people eventually adjust their inflation expectations so that in the long run actual and expected inflation are the same,then policymakers

• A)can not exploit a tradeoff between inflation and unemployment in either the short or long run.
• B)can exploit a tradeoff between inflation and unemployment in the short run but not in the long run.
• C)can exploit a tradeoff between inflation and unemployment in both the short run and the long run.
• D)can exploit a tradeoff between inflation and unemployment in the long run,but not the short run.

---

Definitions:

Light

Electromagnetic radiation that is visible to the human eye and is responsible for the sense of sight.

Heat

A form of energy transferred between objects or systems due to a temperature difference, often perceived as warmth.

Argument By Analogy

making an argument based on the similarity between two situations or cases, suggesting that what applies to one should apply to the other.

Similarity

The state or fact of being similar; resemblance or likeness between persons, things, or ideas.