Question: need some help with these questions i got wrong, thanks! Incorrect Question 3 0 / 10 pts As shown in Exhibit 11, if people behave
need some help with these questions i got wrong, thanks!


Incorrect Question 3 0 / 10 pts As shown in Exhibit 11, if people behave according to rational expectations theory, an increase in the aggregate demand curve from AD, to AD2 will cause the economy to move Exhibit 11 Aggregate Demand and Aggregate Supply Curves LRAS 120 SRAS, SRAST 115 Price level 110 (CPI) 105 -- AD, 100 95 5.0 5.5 6.0 6.5 7.0 Real GDP (trillions of dollars per year) O directly from E1 to E3 and then remain at E3. O from E1 to E2 initially and then eventually move to E3. from E1 to E2 initially and then eventually move back to E1. O directly from E1to E2 and then remain at E2.Incorrect Question 4 0 / 10 pts Under the natural rate hypothesis, expansionary monetary and fiscal policies can at best produce a: permanent change in the unemployment rate. short-run change in the unemployment rate. hort-run change in the long-run Phillips curve. permanent change in the inflation rate. Incorrect Question 5 0 / 10 pts According to the natural rate hypothesis, O the Phillips curve is quite flat, so that a large reduction in employment can be achieved without inflation. workers cannot anticipate the inflationary effects of expansionary public policies. the Phillips curve is vertical in the long run at full employment. workers adapt their wage demands to inflation only after a considerable time lag
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