Top Posters
Since Sunday
7
6
o
5
b
4
s
3
j
3
b
3
s
3
m
3
B
3
K
3
g
3
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
bedau bedau
wrote...
Go to Answer
Posts: 986
Rep: 0 0
6 years ago
Draw two SP curves intersecting LP; call the upper intersection point A and the lower point B. The Fed promises to reduce inflation while maintaining natural unemployment. If the public believes the Fed, the economy moves from ________. Then if the Fed turns out to be time-inconsistent, breaking its promise and trading off ________ inflation for lower unemployment, the public revises the way it forms inflation expectations so that in the long run the economy stays at ________.
A) A to B, lower, B which is superior to A
B) A to B, higher, A which is inferior to B
C) A to B, lower, A which is superior to B
D) B to A, higher, B which is superior to A
E) B to A, lower, B which is inferior to A
Textbook 
Macroeconomics

Macroeconomics


Edition: 12th
Author:
Read 84 times
1 Reply
Replies
Answer verified by a subject expert
thecromthecrom
wrote...
#1
Top Poster
Posts: 1026
Rep: 13 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

bedau Author
wrote...

6 years ago
Helped a lot
julymontalvo
wrote...

Yesterday
Smart ... Thanks!
apelton
wrote...

2 hours ago
Thanks for your help!!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1078 People Browsing
 121 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 678
  
 1053
  
 329
Your Opinion
Which country would you like to visit for its food?
Votes: 261
Previous poll results: What's your favorite math subject?