ECN 211 - All Exam Questions - Ballinger - ASU West | 100 Questions with 100% Correct Answers | Updated & Verified

If there is crowding out... Fiscal expansion (Lowers/Raises) interest rates, which (Increases/Reduces) the net increase in aggregate demand - Raises & Reduces According to the theory of rational expectations, if households and firms believe the Federal Reserve's contractionary policy to be credible and revise expectations to expect a lower inflation rate - Inflation will fall and there would be less unemployment than the traditional sacrifice ratio predicts Which of the following would cause a shift in the short-run aggregate-supply curve, but no change in the long-run aggregate-supply curve? - A change in price expectation Question 6. According to the theory of rational expectations, if households and firms believe the Federal Reserve's contractionary policy to be credible and revise expectations to expect a lower inflation rate, then - Inflation will fall and there would be less unemployment than the traditional sacrifice ratio predicts 8. Would the federal gov