20. Is the price level in the short run most likely to change or not change in response to a shift in macroeconomic policy, according to:

Select exactly 1 answers from the following: A. B. C. D.
答案和详解如下！
Feedback: Correct answer: A

Economics: Private and Public Choice, 10th edition, James D. Gwartney, Richard L. Stroup, Russell S. Sobel, and David A. Macpherson (South-Western, 2003), pp. 359?60

2006 Modular Level I, Vol. II, pp. 121

Study Session 4-18-c, d

contrast the adaptive expectations hypothesis to the rational expectations hypothesis and discuss implications on prices and output under the two hypotheses when there are changes in macroeconomic policies;

distinguish between an activist and a non-activist strategy for stabilization policy

In both the short run and the long run, expansionary (restrictive) policies will result in inflation (deflation) according to both the adaptive expectations and rational expectations theories.

1

c

^^^