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inflation rates in part a? Answer
ECON 2HH3E Practice Test for Test 2 Answers Revised 7 18. Active economic policy seeks to do all of the following expect:
See text page 512 19. Keeping the money supply constant over the business cycle is an example of:
See text page 512 20.The time between when government spending increases and when aggregate demand starts to increase is an example of a(n):
See text page 512 21.According to advocates of rational expectations, traditional estimates of the sacrifice ratio are unreliable because they: a)Ignore inside lags b)Overestimate outside lags c)Are based on adaptive expectations d)Are time inconsistent
See text page 517 22.According to the Lucas critique, when economists evaluate alternative policies they must take into consideration:
See text page 517 23.If policymakers are free to analyze events as they occur and choose whatever policy seems appropriate at the time, then this is:
See text page 519-520
ECON 2HH3E Practice Test for Test 2 Answers Revised 8 24.Inflation targeting is a monetary policy rule that requires the central bank to adjust ______ in order to attain the desired inflation rate.
See text page 524

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