Assume Individuals Consider Only the Short Run Effects of Changes

question 18

Multiple Choice

Assume individuals consider only the short run effects of changes in future macro variables when forming expectations of future output and future interest rates.Suppose individuals expect the central bank to pursue a monetary expansion in the future.Given this information,we know with certainty that

• A)current output and the current interest rate will both increase.
• B)current output will decrease.
• C)the current interest rate will decrease.
• D)the current output effects are ambiguous.

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Definitions:

Group Process

The way team members work together to accomplish tasks.

Team Effectiveness

measures how well a team works together to achieve its goals and objectives.

Performance Norm

This is a standard or expectation within a group or organization that establishes the level of work effort and output that is typical or acceptable.

Productivity Norm

A standard or benchmark for the amount of work or output that should be achieved by a worker or group within a certain time frame.