The more credible the policymakers who pursue an anti-infation policy, the more successfu that policy will be" is this statement true, false, or uncertain? Explain your answer. OA False. The credibility of policymakers is not important to the wage- and price seting process, and thus has no effect on the success of inflation policy B. True. If expectations affect the wage- and price setting process, a credible and-infation policy will reduce inflation faster and at lower costs O C. Uncertain. The success of inflation policy depends on timing and size, not on credibility and expectations OD. Uncertain. Expectations and credibility are only important in the classical model, and so have no effect in other models of the economy.
The more credible the policymakers who pursue an anti-infation policy, the more successfu that policy will be" is this statement true, false, or uncertain? Explain your answer. OA False. The credibility of policymakers is not important to the wage- and price seting process, and thus has no effect on the success of inflation policy B. True. If expectations affect the wage- and price setting process, a credible and-infation policy will reduce inflation faster and at lower costs O C. Uncertain. The success of inflation policy depends on timing and size, not on credibility and expectations OD. Uncertain. Expectations and credibility are only important in the classical model, and so have no effect in other models of the economy.
Chapter27: Issues In Macroeconomic Theory And Policy
Section: Chapter Questions
Problem 6P
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